BusinessBusiness RecoveryPwC: UK corporate insolvencies levelling out

PwC: UK corporate insolvencies levelling out

Research from Big Four firm finds although insolvencies increased in 2009, there are positive signs for the future

Corporate insolvencies rose year on year, but recent stats show a slowdown in
company failures, according to PwC.

Analysis by the firm showed that on a 12 month basis the overall number of
corporate failures has increased by 5% compared to the previous year.

However, the figures provide a glimmer of hope as the first three months of
2010 had 4% fewer corporate insolvencies on the previous quarter, and 20% lower
than the same period in 2009.

Mike Jervis, partner in the business recovery services practice at PwC, said:
“While UK businesses are still suffering from the effects of the global
recession, many will be breathing a sigh of relief as more signs of a recovery
become apparent.”

“At PwC we are seeing a fall in the number of administrations as businesses
are starting to look at other options before insolvency is used as a last
resort. Financial restructuring, company voluntary arrangements and schemes of
arrangement are now being used as businesses are now starting to realise that
the sooner problems are identified, the quicker a solution can be found.”

PwC’s research concluded the sectors which are most affected are:
construction, manufacturing, retail and real estate.

Further reading:

PwC’s
Lehmans fees top £210m

Jarvis
on track to call in administrators

Costly
new rules will put a drag on pre-packs

Related Articles

PwC must face MF Global lawsuit over accounting advice

Accounting Firms PwC must face MF Global lawsuit over accounting advice

1y Richard Crump, Writer
PwC’s business recovery services team appoints four new partners

Accounting Firms PwC’s business recovery services team appoints four new partners

1y Richard Crump, Writer
MPs call on FRC to widen BHS audit probe into PwC

Accounting Firms MPs call on FRC to widen BHS audit probe into PwC

1y Richard Crump, Writer
FRC investigation launched into PwC's BHS audit

Audit FRC investigation launched into PwC's BHS audit

1y Kevin Reed, Writer
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter
Take part in our 'Seven days in Accountancy' quiz

Accounting Firms Take part in our 'Seven days in Accountancy' quiz

2y Fraser Simpson, Reporter
New consortium enters fray to buy BHS empire

Accounting Firms New consortium enters fray to buy BHS empire

2y Chris Warmoll, Writer
PwC questioned over BHS ‘going concern’ audit

Accounting Firms PwC questioned over BHS ‘going concern’ audit

2y Chris Warmoll, Writer