Insolvencies see slight fall

05 February 2010



The overall number of companies being declared insolvent in England and Wales has decreased slightly over the last 12 months, new figures from the Insolvency Service show. It found that in the fourth quarter of 2009, 4,566 entered into compulsory liquidations and creditors' voluntary liquidations, equating to around one in 114 active firms experiencing severe financial troubles.

However, during this period, there were 1,338 compulsory liquidations, marking a 2.7 per cent increase on the previous quarter, but a 14.2 per cent fall when compared to 2008. Creditors voluntary liquidations, meanwhile, were up 5.7 per cent on the same period of last year.

Some commentators anticipate that the number of insolvencies will rise throughout the remainder of this year. Howard Archer, chief UK economist at his IHS Global Insight, told The Guardian: "Much will depend on to what extent credit conditions ease over the coming months, as an inability to access credit continues to plague a number of companies, particularly smaller ones."

B P Collins' team of experienced corporate and commercial lawyers understand that clients expect pragmatic and commercial solutions and assistance in understanding and mitigating risk . We are committed to building long term relationships that help businesses to grow.

Please contact our legal team on 01753 279022, complete the online enquiry form or email commercial@bpcollins.co.uk.

Posted by David Stanning

© Copyright