News and Events

Business failures rise in Q1

04/05/2012

Corporate insolvencies in the UK have risen for the fifth successive quarter during the first three months of the year to compound the challenges businesses are facing.

Just a week after the UK was confirmed to have succumbed to a double-dip recession for the first time since 1975, official figures from The Insolvency Service found there were 4,303 business failures in the first three months of the year. This represents a rise of 0.2% on the final quarter of 2011 and of 4.3% on the corresponding period last year.

This comprises 1,238 compulsory liquidations and 3,065 creditors' voluntary liquidations, whilst there were additionally 336 receiverships, 779 administrations and 175 company voluntary arrangements in the same period.

Late payment and bad debt has been the scourge of small businesses in particular in recent times, a problem that is likely to intensify in the coming months as a result of more and more businesses falling foul of the turbulent trading climate.