Ashfield is seeing more businesses go into liquidation than before the Covid-19 pandemic

An analysis of insolvency data shows the worst affected areas saw the number of firms winding up rise five-fold in 2022 compared to 2019.

The withdrawal of government support and soaring energy costs have been blamed for the rise, with retail and construction having been the hardest hit industries.

Since 2019 there have been 27 businesses that have gone bust in Ashfield.

There were four in 2019, five in 2020, five in 2021 and 13 in 2022.

Michael Weedon, member lead for retail and high street at the Federation of Small Businesses, said: “We’ve seen large rises in insolvencies, particularly in places where there are more independent businesses.

“Large cities tend to be the home of bigger businesses – so the outskirts of big cities and smaller places, where there are more independents, are seeing the effect of these liquidations.

“One really interesting thing we've seen since looking at figures produced commercially is that footfall has not yet returned to pre-pandemic levels.

“Last year, it was down more than 14 per cent, about a seventh below what it was pre pandemic in 2019. Now, for retailers who depend on people actually walking through a door, that has not rebuilt to the level it was even pre-pandemic.

“This means, what they rely on for their flow of cash has been challenged and it hasn't really recovered even now.

“Last year was a real challenge for many in terms of turnover because and at the same time they had this increased cost base.

“If you have to put your prices up because of inflation, more money comes through the till, but it doesn't really help you if it's getting out of the bank even faster on the other side because of the cost of things like energy.”

Liquidations began to rise following the end of the furlough scheme in September 2021.