Corporate insolvencies 'continue to rise'

24 April 2009



Corporate insolvencies are still on the rise in 2009, new figures from PricewaterhouseCoopers (PwC) show. It suggests there were in excess of 5,483 companies made insolvent in the first three months of this year, marking a 14 per cent increase on the previous quarter.

"We can see that UK businesses are still suffering from the effects of the global recession as more and more of them enter into insolvency with no apparent signs of a slowdown in the near future," says Mike Jervis, partner in business recovery at PwC. Statistics from the Insolvency Service on the number of insolvencies in the fourth quarter of last year showed a 51.6 per cent increase on the same period of 2007, suggesting businesses are still struggling during the recession.

Among the sectors worst-hit by insolvency is the construction industry, which PwC reveals had 829 companies made insolvent at the beginning of 2009, closely followed by manufacturing with 734. Retail, hospitality and real estate are likewise experiencing difficulties, the figures show.

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