BusinessBusiness RecoveryInsolvency industry saves 2m jobs

Insolvency industry saves 2m jobs

Profession saves 7% of UK workforce in the last year

The insolvency industry saved nearly two million jobs in the last year
according to research consultancy ComRes.

The figure is based on information from the Office for National Statistics
which estimates the profession saved 7% (1,951,743), of the working population
in the UK from redundancy.

“One might assume that when an insolvency practitioner walks through the door
of your business, it is time to clear your desk, but the reality is very
different,” said insolvency practitioner trade body, R3, vice-president Steven
Law.

“If the IP can get in early enough, often the business, or parts of the
business, can be saved by insolvency procedures such as administration or
company voluntary arrangements,” he added.

There are just six countries across the world which boasts a higher return to
creditors and quicker turnaround than the UK. These include Japan, Singapore,
Norway, Canada, Finland and Belgium according to World Bank data.

“We rank above the US on these criteria, which highlights that during this
recession, the insolvency regime has generally performed well,” said Law.

“It is time to think of the profession as financial healthcare specialists
rather than corporate undertakers. The earlier a company director faces up to
their financial problems, the better the diagnosis is going to be.”

Further reading:

Company
administrations hit four year low

Costly
new rules will put a drag on pre-packs

Corporate
insolvencies continue to decline

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