Despite a huge increase in the number of businesses that went into administration over the last quarter, company insolvencies have dropped over the same period.
Administration orders leapt by 47% to 489 (compared to 331 during Q1 2004), but company insolvencies fell by 7.4%.
Companies entering into administration have increased for the sixth quarter running.
Desmond Flynn, Insolvency Service inspector general and agency chief executive, said that it was ‘encouraging’ that companies had entered into administration rather than slipping into insolvency. ‘This offers a better prospect of rescue and a better deal for creditors,’ said Flynn.
However the outlook was less encouraging for individuals, as bankruptcies rose by 27.9% and individual voluntary arrangements – an alternative to bankruptcy – rose by 40.1% compared to the same period last year.
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