INSOLVENCIES in the North West are rising, according to new research from a leading firm.

PricewaterhouseCoopers reports that more than 764 companies in the region became insolvent in the first three months of 2009, a 22 per cent increase on the previous quarter and a 37 per cent increase over the same quarter in 2008.

David Kelly, director in the business recovery services practice at PwC in the North West, said: “We can see that businesses in the region are still suffering from the effects of the global recession as more enter into insolvency, with no apparent signs of a slowdown in the near future.

“Many companies are leaving it too late to ask for help. Where rescue capital is a scarce commodity, it is obvious that the sooner problems are recognised and companies engage with their financiers, a solution is more likely to be achievable.” The worst affected sectors in the region this quarter are business services (142 companies); construction (132); retail (99); hospitality and leisure (50); manufacturing (36) and real estate (29).