The DTI’s insolvency statistics show a total of 12,240 personal and corporate insolvencies in the fourth quarter of 2002 compared to 11,104 at the same time last year.
Company insolvencies rose the most on a year-on-year basis. In the fourth quarter of 2002, 4,323 companies went to the wall in England and Wales, rising almost 15% from the same period in 2001. Corporate insolvencies rose 11.1% compared to the third quarter, which had seen some recovery after the sharp jump the second quarter.
The fourth quarter saw 7,917 individuals go insolvent. This is a 7.8% rise compared to last year’s figure of 7,342. But unlike in the corporate world, individual insolvency rates rose steadily.
According to PricewaterhouseCoopers, mid-market companies have been particularly hit by the rise in company insolvencies as a raft of major corporate restructurings and profits warnings squeezed suppliers and trade partners.
In contrast the number of companies entering receivership fell by 21% in the fourth quarter 2002 compared to the same period a year ago. This reflects the established rescue culture among the UK clearing banks which increasingly favour rescue and rehabilitation of larger companies rather than formal insolvency.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
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