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15 Oct 2008
Nick O'Reilly, director of Vantis and head of business recovery association R3, says existing laws prevent turnaround firms from rescuing companies struggling under the effects of the economic downturn.
He is calling for changes to UK insolvency laws to be able to handle the expected rise in business failures, which, according to research by PricewaterhouseCoopers, reached a five-year high already in the second quarter. More than 3,200 businesses in England and Wales became insolvent - up 22% on the second three months of 2007, according to mandadeals.co.uk.
'Normally something can be salvaged by selling the business, but our worry is that there could be such a high number of cases that there might not be enough buyers, which could lead to more shutdowns,' he said.
O'Reilly said the government needed to give turnaround firms more time to help bring companies out of administration and allow business owners to borrow against business assets even if they were already leavered.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
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