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Death of Hosiery Industry in Leicester and the effects of Liquidation

Every town and city in the UK is suffering in various ways from debt problems caused in part by the credit crunch. Leicester is no exception. Debt Help agencies in the town have reported a large rise in inquiries for help with debt.

By: Steve Thatcher
Category: Finance:Credit
: Business
Posted: Jul 24, 2009
Updated: Jul 24, 2009
Views: 85


Every town and city in the UK is suffering in various ways from debt problems caused in part by the credit crunch. Leicester is no exception. Debt Help agencies in the town have reported a large rise in inquiries for help with debt.

Leicester is a city in the East Midlands,which also has large cities in Derby and Nottingham. In the 1950's Leicester was one of the richest cities in Europe its wealth being built on shoe manufacturing and hosiery. Great swathes of the population were employed in these industries, sometimes whole families who worked their whole life in one company. Along side Nottingham which built its wealth on Lace, the East Midlands was booming.

Gradually with economic globalisation, buyers from the large retailers understood that they could purchase the same items from developing countries at less cost and gradually production was moved first to north Africa and then to southeast Asia. Huge retailers including the very best high street names which accounted up to 90% of some companies turnover moved that business overseas almost at a stroke leaving it impossible for the companies relying on that business to fill the void

This left a large number of companies without orders causing a huge raft of liquidations and other forms of insolvency in the early 1990's.

The face of industry in Leicester changed and service sectors grew with some government departments moving in. The classic old buildings which one time rang to the sound of knitting machines sat empty. Gradually over time we have seen those buildings changed into luxury flats.

There are still many insolvencies in the city as the remaining textiles and shoe business gradually go under. If you have a textiles business it would be sensible to take advice to protect yourself from any dangers of wrongful trading.

The other side of debt and unemployment from insolvent companies is personal debt. The amount owed by people in Leicester has soared in recent years and as many as six people a day are petitioning for their own bankruptcy.

This is an extreme measure and not for everybody especially if you have a house you may wish to protect. For those with debt problems and some disposable income a Debt Management plan or an IVA would be appropriate.

If you have a debt problem, don't ignore it, take proper advice from a professional.

Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company. For all further reading see http://www.helpwithdebtuk.com for personal contact email sthatcher@helpwithdebtuk.com as he can advise on all forms of debt in Leicester
For Steve's thoughts see http://steves-debt.blogspot.com

Finally if in the UK and you need a friend to speak to call 01162171406

About Author

Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to.
Steve blogs at http://steves-debt.blogspot.com

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