PracticeAccounting FirmsInsolvencies on steep rise

Insolvencies on steep rise

The number of companies going into administration in England and Wales has jumped by more than one-fifth

The number of companies going into administration in England and Wales jumped
by more than one-fifth in the first three months of the year, while bankruptcies
soared by 25%, the latest government figures show.

In all, 858 companies entered administration in the period, according to
Insolvency Service
figures – the second-highest figure since 1998; 54% higher than the previous
quarter; and 22% higher than first three months of 2007, The Times
reports.

Experts said the trend would continue. Liz Bingham,
Ernst
& Young
partner and head of restructuring, said the rise in corporate
insolvencies was the first sign of a trend which would accelerate in late 2008
and into 2009 ‘as the credit squeeze tightens its grip and constrains demand as
well as credit’.

Ken Baird, head of restructuring and insolvency, at the law firm Freshfields,
said: ‘The longer the credit crunch goes on, the harder it will be for many to
obtain new finance or renegotiate debts.’

Further reading:

Read
The Times story

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

3d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

4w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin