Insolvencies to rise even after growth returns
2010 will see more collapsed companies than last year
Company insolvencies in 2010 will exceed last year rising to 28,000 against
22,800 in 2009.
The predictions come from a poll of members of R3, the professional body for
insolvency practitioners.
The figures suggest insolvencies will go on rising long after the UK has
emerged from recession. Statistics published today are expected to show the UK
is back in growth.
Peter Sargent, chairman of R3, is quoted in the Financial Times
today saying entry into recession was “sharp” but the exit would be a “long slow
drag”.
The FT reports that the main reason for the continuing rise in insolvencies
will be increased aggression from creditors as the economy recovers. This will
stem from the need for banks to move money from struggling companies to start
ups.
High profile insolvencies in the recession have included Woolworths,
Threshers, the Officer’s Club.
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