BusinessBusiness RecoveryInsolvency – down but not out

Insolvency - down but not out

It might be time to celebrate a sector that's struggling.

Insolvency business is down. We all know the number of people going bankrupt in 2003 rocketed to levels not seen since more than a decade ago. But it is the fact that the number of businesses going insolvent fell 25% on the year before that is most striking.

That’s good for most of UK plc, but bad for insolvency practitioners, for whom it is the work carried on struggling businesses that really makes a difference to the bottom line.

That said, we shouldn’t expect insolvency firms themselves to go under.

Nevertheless they should brace themselves for lower fee income from this service line for the foreseeable future. That’s particularly significant as it’s one of the fastest growing – rocketing by 16% across the Accountancy Age Top 50 last year.

If there’s any consolation, it’s that the biggest players should be OK.

With special agreements with lenders in place, they will continue to eke out a reasonable living by providing business restructuring advice to a bank’s (potential) problem clients.

But smaller firms with significant insolvency operations should think long and hard about redirecting resources. Hopefully most will have done so already.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor