BusinessBusiness RecoveryDeloitte: Administrations at pre-credit crunch low

Deloitte: Administrations at pre-credit crunch low

Corporate insolvencies hits a four year low for the first half of 2010, according to Deloitte

Administrations have dropped to a pre-credit crunch low for the first half of
this year, according to figures released by Deloitte.

The first half (H1) of 2010 saw a 43% decline in corporate administrations
compared with the same period last year, and a 25% drop compared with the same
timeframe in 2006.

According to research from Deloitte the first six months of 2010 had just
1,065 administrations – a pre-credit crunch low. Administrations in H1 2008
reached 1,440; 2007 1,205, and 2006 1,419.

Lee Manning, reorganisation services partner at Deloitte, said: “We are
seeing a steady decline in administrations and this is certainly a positive sign
that the climate is stabilising. I would be very surprised if administration
levels increased dramatically this year; rather I would expect the second half
to mirror the levels of activity we’ve seen in H1.

“Clearly the economic situation will remain challenging and whilst increased
VAT in the new year won’t have a material impact on the prices of most products,
this won’t help consumer confidence either.”

Retail was badly hit by the recession but has also seen administrations fall
57% in H1 2010 compared with the same period in 2009.

Lee said the decline was due to “successful” discussions with landlords to
spread the burden of rent and the increase in alternatives such as company
voluntary arrangements – where the business arranges to repay a percentage of
its debt whilst continuing to trade.

Further reading:

Begbies
Traynor: Businesses owe nearly £70bn to creditors

HMRC
calls for administration at Southend United

OFT
wants “far-reaching reform” of corporate insolvency regime

Related Articles

Big Four insolvency specialist joins Gibson Hewitt

Business Recovery Big Four insolvency specialist joins Gibson Hewitt

1y Richard Crump, Writer
Due diligence on BHS 'extensive' GT partner tells MPs

Accounting Firms Due diligence on BHS 'extensive' GT partner tells MPs

2y Chris Warmoll, Writer
MPs hear from trio of Big Four firms over BHS advice

Accounting Firms MPs hear from trio of Big Four firms over BHS advice

2y Chris Warmoll, Writer
R3 calls for creditor 'breathing space' to help turn companies around

Accounting Standards R3 calls for creditor 'breathing space' to help turn companies around

2y Chris Warmoll, Writer
R3 cautiously welcomes advent of simpler bankruptcy regime

Business Recovery R3 cautiously welcomes advent of simpler bankruptcy regime

2y Chris Warmoll, Writer
Buyers found for two Powa companies

Business Recovery Buyers found for two Powa companies

2y Chris Warmoll, Writer
Deloitte announce redundancies at Powa Technologies

Business Recovery Deloitte announce redundancies at Powa Technologies

2y Chris Warmoll, Writer
Taking Stock: Spotting accounting flaws is child’s play

Audit Taking Stock: Spotting accounting flaws is child’s play

2y Taking Stock