AT AN Institute of Credit Management think tank meeting this week, it was clear that members representing insolvency practitioners, credit insurers and grass roots credit management are still scratching their heads over the relatively low insolvency numbers.
Historically, when the UK has pulled itself out of a recession, insolvencies have tended to rise.
During this particular credit crisis, insolvency stats were surprisingly suppressed, and in its aftermath, figures have continued to fall.
The mood among credit industry professionals seems to be one of cautious pessimism. Many still think that the number of business casualties will increase at some point, but I’m not too sure about this.
Due to a number of contributing factors, such as low interest rates, HMRC’s Time to Pay scheme, and worries about the economy holding back many businesses’ expansion plans, thus reducing the risk of over trading, maybe insolvency stats will remain muted.
If my last point is true, it may be good from a narrow insolvency stats perspective, but it won’t do much to help drive an economic recovery of any note.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children