Knowledge Centre
27th April 2009
The number of business insolvencies has risen by more than half, new research by PricewaterhouseCoopers (PWC) has revealed.
The analysis showed that more than 5,483 companies became insolvent in the first quarter of 2009 - up 14% on the previous quarter and 57% on the same quarter in 2008.
Construction was the worst-hit sector, with 829 companies declared insolvent, followed by manufacturing (734), retail (705), hospitality and leisure (312) and real estate (235). All five sectors are experiencing the worst levels of insolvency in five years.
Mike Jervis, partner in business recovery services at PWC, said: "The actual insolvency statistics show only part of the picture. There are many restructurings either not involving insolvency or using light-touch insolvency techniques to salvage viable businesses."
The Federation of Small Businesses FSB) expects around 36,000 small businesses to cease trading in 2009.
Stephen Alambritis from the FSB told More Than Business News: "We would urge the regional development agencies and Business Links to step up their help to small businesses in danger of closing down.
"We can reduce the number of closures by the big companies paying their small suppliers on time. In this regard, the Prompt Payment Code will be of immense help. Equally constructive is the HMRC support helpline giving small entrepreneurs the opportunity to revise, review, rearrange or even defer tax payments."
Related articles:
Small business support - where to turn in the credit crunch
New finance schemes for small businesses: a guide
Insolvencies up 57%
The analysis showed that more than 5,483 companies became insolvent in the first quarter of 2009 - up 14% on the previous quarter and 57% on the same quarter in 2008.
Construction was the worst-hit sector, with 829 companies declared insolvent, followed by manufacturing (734), retail (705), hospitality and leisure (312) and real estate (235). All five sectors are experiencing the worst levels of insolvency in five years.
Mike Jervis, partner in business recovery services at PWC, said: "The actual insolvency statistics show only part of the picture. There are many restructurings either not involving insolvency or using light-touch insolvency techniques to salvage viable businesses."
The Federation of Small Businesses FSB) expects around 36,000 small businesses to cease trading in 2009.
Stephen Alambritis from the FSB told More Than Business News: "We would urge the regional development agencies and Business Links to step up their help to small businesses in danger of closing down.
"We can reduce the number of closures by the big companies paying their small suppliers on time. In this regard, the Prompt Payment Code will be of immense help. Equally constructive is the HMRC support helpline giving small entrepreneurs the opportunity to revise, review, rearrange or even defer tax payments."
Related articles:
Small business support - where to turn in the credit crunch
New finance schemes for small businesses: a guide
Post to:
What are these?
No comments have been published yet.
- 20th January 2011 Unemployment figures hit 2.5 million
- 14th January 2011 Government 'must introduce fuel duty stabiliser'
- 7th January 2011 FSB call 'to reverse VAT rise'
Site by Acknowledgement