Around 13% of companies in Wales may have suffered a financial hit following the insolvency of a customer, supplier or debtor in the last six months, according to new indicative research from the Welsh branch of R3, the insolvency and restructuring trade body.
The Welsh figure is lower than the proportion of UK companies reporting a negative effect from the insolvency of a counterparty within the previous six months, which stands at over one in four (26%).
The report found the financial impact of the insolvency of another business was described as very negative by around 3% of Welsh companies, and as somewhat negative by 9% of local respondents.
The figures are evidence of the so-called domino effect, where one companys insolvency w…
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