UK at risk of mass business failure

Begbies Traynor
has warned that business insolvencies could be set to leap after winding-up
petitions rose sharply during the winter.

The firm’s figures show that winding up petitions, the last step before
insolvency, increased dramatically in the last quarter of 2006 compared to the
year before.

‘After a long period of stable low interest rates and an expansion in the
availability of external finance, the pressures on struggling UK businesses now
seem to be mounting,’ said Ric Traynor, executive chairman of Begbies.

‘There is an inexorable slide towards insolvency if the issues faced by those
businesses are not addressed beyond simply borrowing more money and hoping for
better times.’

Further reading:

Insider Business Club: business recovery
& turnaround

Insolvency specialists anxious as corporate failures

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