BusinessBusiness RecoveryInsolvencies back on the increase

Insolvencies back on the increase

After a third-quarter lull, insolvency figures have risen nearly 3% in a year, Department of Trade and Industry figures have today revealed.

Company insolvencies in England and Wales climbed to 3,798 in the fourth quarter of 2001, an increase of 2.6% on the previous year and 1.8% up on the previous quarter.

This comes after a surprising fall in third-quarter company failures. Insolvency figures are also higher than in the second quarter of 2001.

However, individual insolvencies barely grew from one quarter to the other, as only a total of 7,340 people went bankrupt.

A total of 14,972 companies went bankrupt in 2001, representing 1.1% of all active companies in the UK.

Tony Lomas, business recovery partner at PricewaterhouseCoopers said: ‘If the market thought theat large swathes of businesses would recoil from the shocks to the international economy and increasing pressure from banks, there is not much evidence of this happening.’

He added: ‘Banks have steadfastly avoided making judgements about the future potential of businesses in the immediate aftermath of the events of last September. This attitude among lenders means circumstances are far more positive than one might have expected.’

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