BusinessBusiness RecoveryUK faces insolvency ‘epidemic’ in 2009

UK faces insolvency 'epidemic' in 2009

Insolvency specialist says it has seen a surge in approaches from struggling businesses

The UK faces an ‘epidemic’ of business failures next year, with companies in
the retail, motor and property sectors most at risk, a leading insolvency
specialist has warned.

As the economic downturn deepens Tenon Recovery said calls for assistance
from companies in the retail, restaurant, motor industry, property and leisure
industries in the last two months were nearly 200% higher than the same period
last year.

“We believe the symptoms we are seeing now are a precursor to a potential
epidemic of insolvencies in 2009,’ said Carl Jackson, head of Tenon Recovery.’It
is quite usual for some non-seasonal businesses to turn off the lights in the
run up to Christmas as they know they will not be able to survive in the New
Year but we have never seen such a broad spread of businesses fail so early.’

The primary characteristics of a troubled business include weak equity base,
low profit, losses, weak management, substantial debtors, and a high fixed cost
base, according to Tenon.

It has published a financial ‘health check’ to help struggling companies,
including advice on management information, management control and systems and
processes.

Related Articles

R3 calls for creditor 'breathing space' to help turn companies around

Accounting Standards R3 calls for creditor 'breathing space' to help turn companies around

2y Chris Warmoll, Writer
R3 cautiously welcomes advent of simpler bankruptcy regime

Business Recovery R3 cautiously welcomes advent of simpler bankruptcy regime

2y Chris Warmoll, Writer
Taking Stock: Spotting accounting flaws is child’s play

Audit Taking Stock: Spotting accounting flaws is child’s play

2y Taking Stock
Former Scots Tory party treasurer hit with bankruptcy restrictions

Business Recovery Former Scots Tory party treasurer hit with bankruptcy restrictions

2y Richard Crump, Writer
Administrations ‘flat-line’ as personal insolvencies hit low

Business Recovery Administrations ‘flat-line’ as personal insolvencies hit low

2y Richard Crump, Writer
Company and personal insolvencies sink to pre-recession lows

Business Recovery Company and personal insolvencies sink to pre-recession lows

3y Richard Crump, Writer
Bankruptcies hit lowest quarterly level in 15 years

Business Recovery Bankruptcies hit lowest quarterly level in 15 years

3y Richard Crump, Writer
PwC faces $1bn lawsuit over bad MF Global advice

Accounting Firms PwC faces $1bn lawsuit over bad MF Global advice

3y Richard Crump, Writer