Insolvencies lower than before recession

Insolvencies lower than before recession

Deloitte figures show corporate insolvencies are currently lower than they were in 2006

Corporate administrations are down 36% for the first nine months of 2010
compared to the same period last year according to Deloitte. The figure is a 20%
drop on the same period in 2006, a year before the financial downturn began.

There have been 1,648 administrations this year compared with 2,589 for the
same period in 2009, the report said.

Lee Manning, reorganisation services partner at Deloitte, said: “For the
first time since the financial crisis began, we’re beginning to see a consistent
drop in the numbers of companies hitting the wall. This can only be a good
thing.”

The retail sector saw the most pronounced reduction in administrations as
company collapses fell 50% for the first nine months of this year, compared with
the same period in 2009.

“Certainly the raft of retail administrations we saw at the end of 2008 and
beginning of 2009 sorted the weaker businesses from their more viable
competitors,” said Manning.

However, he warned with the upcoming VAT rise, impact of higher income taxes
and national insurance, it would not be surprising if the country saw more ”
retail casualties” in the future.

Further reading:

Corporate
insolvencies to fall in third quarter

Coastal
cities have highest personal insolvency

Deloitte
administrators in at Jarvis

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource