One in eight food and drink manufacturers is in financial difficulty, according to a leading credit reference agency. ICC Credit went through its database of four million limited and unincorporated firms to identify those most likely to default on payments and found that 12.5% of food and drink suppliers were in danger of failing to meet their financial obligations.
This compared to 10.2% of wholesalers, 9.1% of retailers and 3.8% of companies in agriculture.
To identify the riskiest sectors, ICC looked at the number of companies in each sector that were insolvent, in liquidation, receivership, administration or voluntary arrangements, or with bankruptcy filings, High Court writs or county court judgments against them. This was then expressed as a percentage of the total number of companies per sector in the database. London-based companies carried a higher risk of defaulting on payments.