BDO: business failures to jump 9% in 2008
BDO expects a 9% jump in bankruptcies of UK businesses, to reach the highest level in five years
BDO Stoy Hayward has
forecast a 9% rise in UK business bankruptcies in 2008, to reach the highest
level since the dot.com crash five years ago.
The credit crunch, higher interest rates and a staggering economy are
expected to cause mounting business failures up to 17,697 across the UK,
The Daily Telegraphy reports.
This figure is forecast to jump to 18,142 in 2009. At the height of the
dot.com bust in 2002, 20,000 companies failed.
BDO expected the services sector to be hardest hit and estimated a 15%
increase in the number of businesses going bust in this sector, to 3,757,
financial services companies taking the brunt of the failures.