Liquidations to hit 16-year high, says Wilkins Kennedy
Firm says 23,173 liquidations are on the cards, the highest number since the UK was hit by the 1993 recession
Company liquidations will soar to 23,173 for the year to 31 March 2009
according to Wilkins Kennedy, representing the worst period for businesses since
the last recession.
After analysing data obtained from Companies House, Wilkins Kennedy said it
was the highest number since 1992-93, when liquidations reached 28,700.
There were nearly five times as many company liquidations as company
insolvencies. 4,820 companies became insolvent over the period.
Keith Stevens, insolvency partner at Wilkins Kennedy, said: ‘Falling demand
and the reluctance of lenders to extend credit are having a major impact on the
ability of companies to continue trading.’
‘Liquidations tend to peak as the economy emerges from a recession, so we
could see even more companies shutting up shop as those weakened during the
downturn finally succumb.’
The forecast for 2008-09 shows a 17% jump in liquidations from the previous
year when company liquidations reached 20,195.