Company Insolvencies On The Increase

April 10, 2012 - PRLog -- Company insolvencies were up 7.4 per cent during the final report of last year in England and Wales compared to the same period in 2010.

Overall, there were 4,260 compulsory and creditors’ voluntary liquidations (CVLs) – 0.4% increase on Q3 (three months ended 30th September 2011) according to statistics released by the Insolvency Service.

Compulsory liquidation recorded the biggest increase at 1,389 – any increase of 14.1% on Q3 and 16.1% on the same period from the previous year.

The number of CVLs recorded a 5.1% drop on Q3 yet this was still 3.4% up on the same period in 2010.

Frances Coulson, President of R3 said “We have known for a while that many businesses are surviving but not thriving, operating as “zombies” and eventually some will have to fail. This is certainly the calm before the storm. In fact if the economy is to recover, we must see some businesses fail to allow viable ones to thrive”.

The statistics indicate a beginning of a change in the mentality of lenders. It appears that this may be the beginning of a reduced appetite to continue to support stressed companies.

www.griffinandking.co.uk

# # #

Griffin and King are a leading firm of Insolvency Practitioners within the West Midlands with offices covering Dorset, Hampshire, Shropshire and Mid Wales