Company insolvencies on the rise
Latest figures put out by the Department of Trade & Industry show a nearly 5% increase in corporate insolvencies, although figures are down on the year.
Link: Insolvencies rise as downturn bites
The DTI revealed that company insolvencies had climbed from 3,672 in the first quarter of the year to 3,843 in the second quarter.
But, compared with a year ago, figures where almost 7% lower than the 4,130 companies that collapsed in the second quarter of 2002.
Nick Hood, senior London partner at Begbies Traynor, said the feeling amongst insolvency experts was that there were ‘very mixed messages about the health of the economy’.
‘Not only are corporate recovery experts relatively quiet, but so are the intensive care units of the major banks. Clearly certain business sectors are now recovering, notably those benefiting from improved inbound tourism and the cautious turnaround in advertising and media spend,’ Hood addded.
Begbies expects company insolvencies to rise again in the next quarter, although ‘not by much’.
On the individual front, insolvencies surged by 6.3% to 8,662, a massive 14% on the year.