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26 Jan 2010
Company insolvencies in 2010 will exceed last year rising to 28,000 against 22,800 in 2009.
The predictions come from a poll of members of R3, the professional body for insolvency practitioners.
The figures suggest insolvencies will go on rising long after the UK has emerged from recession. Statistics published today are expected to show the UK is back in growth.
Peter Sargent, chairman of R3, is quoted in the Financial Times today saying entry into recession was “sharp” but the exit would be a “long slow drag”.
The FT reports that the main reason for the continuing rise in insolvencies will be increased aggression from creditors as the economy recovers. This will stem from the need for banks to move money from struggling companies to start ups.
High profile insolvencies in the recession have included Woolworths, Threshers, the Officer's Club.
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Visitor comments Add your comment
That's normal
Insolvencies always do rise after recessions end - that's been the case time after time. It's in the nature of the beast - leaky boats continue to go under even though the storm has passed. To stretch the analogy, sometimes even the efforts of the crew make the holes bigger.
Posted by: Heward Simpson, 26 Jan 2010 | 00:00