BusinessBusiness RecoveryUK corporate insolvencies drop rapidly

UK corporate insolvencies drop rapidly

Formal insolvencies in the UK decline to 2008 levels, according to PwC

CORPORATE INSOLVENCIES in the UK are rapidly declining, according to statistics from PwC.

There were just 15,894 formal insolvency procedures across the UK in 2010 compared with 19,512 in 2009. Only 3,605 companies became insolvent in the fourth quarter of 2010, representing a 6% drop compared to the third quarter of 2010, and 19% fall on the same period in 2009.

Mike Jervis, partner in business recovery at PwC, said: “UK businesses are certainly not out of the woods yet, as we expect looming public sector cuts to hit the bottom line of many public sector suppliers.”

“A modest increase in interest rates would also put additional pressure on many struggling companies,” he added.

The research also shows London continues to have the highest number of corporate insolvencies by region.

The worst hit industries include construction, which saw 565 companies enter a formal insolvency arrangement in 2010, manufacturing (410), retail (399), hospitality and leisure (237) and real estate (131).

 

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor