View more on these topics

Company liquidations down 19%

There were 4,080 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the second quarter of 2010, an increase of 0.5% on the previous quarter but .

This was made up of 1,169 compulsory liquidations, which are down 9.9% on the previous quarter and down 21.0% on the corresponding quarter of the previous year, and 2,911 creditors voluntary liquidations, which are up 5.4% on the previous quarter and down 18.3% on the corresponding quarter of the previous year. 

In the twelve months ending Q2 2010, approximately 1 in 127 active companies went into liquidation, which is a slight decrease from the previous quarter, when this figure stood at 1 in 120. 

Additionally, there were 1,311 other corporate insolvencies in the second quarter of 2010 comprising 302 receiverships, 777 administrations and 232 company voluntary arrangements.  In total these represented a decrease of 14.3% on the same period a year ago. 

There were 34,743 individual insolvencies in England and Wales in the second quarter of 2010. This was an increase of 5.0% on the same period a year ago.

This was made up of 14,982 bankruptcies, which were down 20.6% on the corresponding quarter of the previous year, 13,466 Individual Voluntary Arrangements, which were up 10.2% on the corresponding quarter of the previous year and 6,295 Debt Relief Orders.

In the second quarter of 2010, 85.7% of bankruptcies were made on the petition of the debtor, comparable to the levels for recent quarters.  The percentage of bankruptcy orders involving trading debts was 12.7% in the first quarter of 2010, similar to the level for 2009 as a whole.

Brian Johnson, an insolvency practitioner at HW Fisher & Company chartered accountants, says: “Britain’s businesses are limping on like a wounded army in retreat. Although the main of the army is intact, it is losing people along the way.

“It is still difficult to see how we are going to get out of the rut that we are in, as many companies still cannot get the finance they need to survive.

“The fact that the banks are returning good numbers and improving their balance sheets will count against struggling companies rather than benefit them. Once banks are more confident, they will more readily remove funding on businesses they do not feel to be viable.

“We expect the number of corporate insolvencies to be far higher in the fourth quarter and to continue rising into 2011.”

Recommended

ANDREW MONTLAKE: THIS REDUCES CLIENTS’ CHOICE

Industry saddened to see brand axed as A&L merges into Abbey

Santander’s decision to merge its Alliance & Leicester business with its Abbey brand has disappointed brokers. From October 15 all broker business will come under a single Abbey brand. Alan Mathewson, managing director of intermediary distribution and Santander Private Banking (UK), says the decision was taken to allow the bank to align its offering and […]

WINNER.jpg

LAST WEEK’S WINNER

“The final humiliation for a broker was having to advertise a rival’s products just to earn a wage.” TOM CLEARYSTART FINANCIAL SERVICES

A modern horror story

Every day a quick scan of the news reveals some new horror that will change the lives of those involved forever – the unlucky accident on the way to work, a tragic illness that cuts a young life short or the holiday accident that leaves more than just a scar to cope with. We barely […]

Newsletter

News and expert analysis straight to your inbox

Sign up