Nearly 1,200 businesses closing every day

Nearly 1,200 businesses have closed every day in the past six months according to new research by DSA Connect.

The company’s analysis of Government data shows 214,930 companies shut down in the six months to 31st March. The last three months of 2020 saw 103,785 firms go out of business and the number closing rose 7% to 111,145 in the first three months of this year.

Companies in the professional, scientific, and technical sector were the most likely to stop trading in the six months with 38,530 shutting, accounting for around 18% of total closures followed by business administration and support service companies, which accounted for 27,420 closures and around 13% of firms going out of business in the six months.

Harry Benham, Chairman of DSA Connect said “Business owners have had a tough time during the COVID-19 pandemic, and it is understandable that so many have ceased trading.”

“Thousands of those companies will have IT hardware with sensitive data on it which they will need to dispose or recycle, and the concern is that many will not be aware of the need to do this safely and securely and could face fines if they fail to do so.

“Business owners looking for support need to be careful as there are a number of companies which claim to be professionals in erasing data and IT destruction but are not.”

Other sectors which recorded high levels of closures in the six months include information and communication which saw 23,020 companies close; construction which recorded 24,070 closures and retail where 18,770 companies shut.

Nearly a quarter of businesses shutting down were based in London where 50,510 companies closed, followed by the South East with 30,575 closures and the North West with 20,995 businesses shutting.

The table below shows the top five UK regions and industry sectors for business closures during the last six months:

REGIONS	SECTORS
London – 50,510 closures	Professional, scientific and technical – 38,530 closures
South East – 30,575 closures	Business administration and support services – 27,420 closures
North West – 20,995 closures	Construction – 24,070 closures
East – 20,645 closures	Information and communication – 23,020 closures
West Midlands – 20,110 closures	Retail – 18,770 closures