Corporate insolvencies climb 9%
PwC stats reveal year on year increase in corporate insolvencies
COMPANY INSOLVENCIES have increased on the same period last year, according to PwC’s insolvency statistics.
In Q3 2011 there were 3,601 corporate insolvencies, a 9% increase on the previous year – but an 11% decrease quarter on quarter.
Construction (11%), hospitality and leisure (18%) and retail (12%) were big climbers year on year.
PwC partner Mike Jervis aid there was “little or no room for manouevre” for retailers approaching the crucial Christmas shopping period.
“Retailers and their stakeholders need to forecast obsessively, especially on their cash, and think about what the period post Christmas might look like,” said Jervis.
“Those involved with retailers must proactively engage with management and have a contingency plan in place well in advance of the December rent quarter day.
“The impact of public sector cuts on the private sector is only just being felt. There have been a number of warnings this week, but the ripple effect down the supply chain is still rather invisible. Managing the fall-out from this will be a major factor contributing to the trends in the December quarter insolvency numbers.”