Company liquidations hit 16-year peak
Monday 23 March 2009
Many British businesses are giving up trading before being formally forced into insolvency as they face a worsening economy and banks reluctant to provide them with the funding they need to stay afloat, research published today suggests.
The number of companies entering liquidation isset to reach its highest level in 16 years according to the research, by accountancy firm Wilkins Kennedy.
The number of businesses ceasing to trade in the year to March 31 2009 is expected to reach 23,713, according to the firm, which analysed data from Companies House. This would be a 17 per cent rise on the previous year and the highest since 1992-93, when the UK economy began to emerge from the last recession and liquidations, which tend to peak towards the end of a slowdown, reached 28,700.
The data also shows that there were many more company liquidations, where a company stops trading, than insolvencies.
“The number of liquidations is running at nearly five times the rate of company insolvencies, which shows that far more companies are closing down than the official insolvency figures reveal,” Keith Stevens, insolvency partner at Wilkins Kennedy, said. “We are seeing an increasing number of companies choosing to throw in the towel and cease trading early rather than hanging on until the bitter end and waiting until they are insolvent.”
Wilkins Kennedy warned that some liquidations were happening because lenders are refusing to extend credit to businesses that are otherwise trading profitably.
Mr Stevens added: “Falling demand and the reluctance of lenders to extend credit are having a major impact on the ability of companies to continue trading.”
Construction and property service companies accounted for over a third of all UK corporate insolvencies at the end of last year, Wilkins Kennedy said.
Missing Malaysia Airlines Flight MH370: Wreckage could be found within a week as search reaches 'very critical juncture', says minister
Loch Ness Monster found on Apple Maps?
Royal Tour 2014: Is the Duchess of Cambridge the only person ever to climb into a fighter jet wearing a dress and high heels?
Kim Jong-un, crowds and contraband: Inside North Korea with the Pyongyang marathon winner
Cover up! Mother told to show less cleavage during Disneyland family trip: 'Are we supposed to wear turtlenecks our whole lives?'
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 'Natural' energy drink banned for containing erectile dysfunction drug
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Dylan Tombides: West Ham confirm 20-year-old striker has died after battle with cancer
- 4 Loch Ness Monster found on Apple Maps?
- 5 Angus Steakhouse: How does tourist staple continue to thrive in today's gourmet market?
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...