Recession, what recession? – Company Insolvencies Decrease

Credit crunch yet to have an impact on company insolvencies.

By News Desk
1st February 2008 at 18:34

The latest figures released today by the Insolvency Service show that there were 3,135 company liquidations in England and Wales during the last quarter of 2007, down 2.1% on the same period a year ago.

Compulsory liquidations also fell compared to the corresponding quarter in 2006 (down 17.0%) whereas voluntary company liquidations increased by 9.5%.

Taken together these data would seem to suggest that companies are in good health, with fewer facing imminent closure than one might have expected as business begins to feel the bite of the credit crunch.

But Clive Lewis of the Institute of Chartered Accounts of England & Wales, commenting on the figures, warned against complacency:

Following the announcement of a small decrease in company liquidations in 2007 we believe that there is likely to be a significant increase in 2008.  It often takes sometime for the figures to reflect the reality of the situation and with the credit crunch still taking affect, the housing market slowing and consumer confidence low we think that there will be  an  increase for the whole of 2008.

Commenting Is Easy

Do you have an opinion on this news item? Have something to add that others might find helpful? Then please leave a comment in the box below.

If you'd like to have your image included next to your comments here, then you can set yourself up with an avatar in just a couple of clicks.

Leave a comment

Related Posts

Photostream

Listen to the sales podcast for SMEs Subscribe to the podcast on iTunes

PARTNER PROMOTIONS

If looking to boost your businesses performance with promotional marketing, travel incentives or incentive schemes get it touch with NDL Group