TWO thirds of North-East book shops face an increased risk of going insolvent in the next year, according to new research.

R3, a trade body which represents insolvency practitioners, examined the fortunes of 4,200 businesses in the North-East retail sector.

It measured companies’ balances sheets, director track records and other information to calculate their likelihood of survival over the next 12 months.

R3 said forty per cent of the region’s clothing stores were in the same category as booksellers, facing an increased risk of insolvency.

But there was better news for home furnishing stores which were performing better than their peers across the country.

Andrew Haslam, chair of R3 in the North-East, said: “There are still some good news stories in the region’s retail sector, but no overall quick fix on the horizon.”

In its recent annual report the Local Data Company said 100 retail stores were lost in the North-East last year.

It said Darlington had the highest net reduction with 24 stores closing and nine opening.