Corporate insolvencies in 2013 fell significantly on the previous year, the Insolvency Service has revealed.
Latest statistics, published on 7 February, showed that in 2013 there were 14,982 compulsory liquidations and creditors’ voluntary liquidations in total, down 7.3 per cent compared to 2012.
The figure for compulsory liquidations was down 14.9 per cent on 2012 while creditors’ voluntary liquidations were 4.5 per cent lower than the previous year.
Other corporate insolvencies also fell significantly. In 2013, there were 917 receiverships, 2,365 administrations and 577 company voluntary arrangements, a total that was16 per cent down on 2012.
Giles Frampton, vice-president of insolvency trade body R3, said the figures were in keeping with a general downward trend since the start of the recession, but warned: “Historically, corporate insolvencies increase as the economy exits recession. With corporate insolvencies still low, it may be the case that economic recovery hasn’t taken hold as firmly as it might otherwise appear.
“Some businesses will have taken advantage of the extended gap between recession and growth to put their finances back in order, but this won’t be the case for everyone. The economic recovery and any future rise in interest rates is likely to put upward pressure on insolvencies.”
Businesses facing financial challenges should always seek professional advice, at the earliest possible stage, to help identify practical solutions to their difficulties. Palmers can provide expert advice on a wide range of insolvency matters – for more information, please visit our website or contact Andrew Skinner.