LONDON (Reuters) - The number of distressed British businesses more than trebled in 2008 compared with the previous year, insolvency expert Begbies Traynor said yesterday, adding it expected a big rise in retail failures this year.

A total of 5,651 companies faced critical problems in the fourth quarter of 2008, up 82 percent on the year, as the shockwaves of the global banking crisis spread throughout the economy, Begbies Treynor said.

The increase for the whole of 2008 was 245 percent.

The number of distressed companies in the advertising, transport and communications and property sectors all rose over 150 percent in the fourth quarter.

The rise for retail companies was 81 percent, but Begbies Traynor said this was set to accelerate.

"We expect the rate of retail failures, running at an annualised figure of 1,600 in the weeks before Christmas and up 58 percent from 2007, to accelerate sharply through 2009 as sales continue to fall despite ongoing discounting and as the weakness of sterling drives up costs," it said.