London (AFP)
Thousands of businesses bankrupted in the UK between early March and mid-April and in far greater numbers than a year ago due to economic paralysis stemming from coronavirus containment, study finds published Monday.
According to this survey, some 21,200 more companies went bankrupt over this period compared to last year, a jump of 70% over one year.
British economy "caught between a surge in business closings and a deficit in new business openings due to understandable fears about what the future holds," said Mark Hart, deputy director of the Research Center on companies (ERC).
At the same time, the number of new companies fell 23%.
These figures must also be read in the light of a British economy already damaged by "the uncertainties linked to Brexit", specifies the ERC.
The transport sector was the one that suffered the most because of the almost total cessation of international travel and confinement on the territory, with a number of cessations of activities almost tripled in one year.
Real estate, wholesalers and information services are the other areas most affected.
"The Chancellor of the Exchequer has unveiled an important package of support for British businesses, but we know that many are struggling to benefit from it. If these difficulties are not resolved quickly, we may see the continuation of a long and slow decline in private companies that provide millions of jobs, "and economic depression instead of a short recession, warns the study.
Among recent business failures, the airline Flybe, already in trouble before the health crisis, estimated that the pandemic had brought it to a head. Virgin Atlantic warns Monday that it may not survive without substantial government support.
In catering, another sector in the process of being damaged because all establishments had to close their doors to the public, Italian restaurants Carluccio's have closed their doors.
© 2020 AFP