Figures published this week by Big 4 firm Deloitte show that administrations have risen by 12 per cent in the third quarter of this year.
According to the financial services firm, recruitment agencies and business services companies have been worst-hit, with the number of bankruptcies reported up 266 per cent compared to the same time last year.
However, retailers have been more fortunate, with administrations rising by only three per cent.
Lee Manning, reorganisation services partner at Deloitte, said: "It comes as no surprise that the volume of administrations is increasing: the economic situation is testing even the strongest of businesses, let alone those with weaker balance sheets."
He added that as businesses were looking to cut costs, there was less demand for temporary staff which was reflected in the 67 per cent increase in bankruptcies for recruitment agencies.
Meanwhile, the Office for National Statistics has reported a drop of 0.4 per cent in retail sales in September, a better result that the 0.9 per cent expected.
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