BusinessBusiness RecoveryCorporate insolvencies rise signals economic woe

Corporate insolvencies rise signals economic woe

Failing businesses up 1.8% in third quarter, with the worse still to come

Continued growth in the number of corporate insolvencies could threaten the
UK economy as the credit crunch starts to hurt businesses.

Government statistics have revealed a
1.8%
rise
in the number of companies hitting the wall over the three months to
September, with more companies expected to struggle in the coming months as the
squeeze on credit hits hard.

Those in the travel, tourism and agriculture industries are likely to feel
the full force of the changing market conditions.

Peter Sargent, council member of insolvency trade body
R3 said that he had already noticed
changes in the leisure and tourism industries and small businesses will be the
first to suffer as credit becomes harder to obtain.

Grant Thornton has estimated that corporate insolvencies will rise by a
further 5%-10% during the last three months of the year, with worse to come in
2008, according to the Financial Times, which could deal a huge blow to the UK
economy.

Further Reading:

Businesses
put on insolvency alert

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

5d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

5d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor