4,500 firms hit by insolvency in fourth quarter of 2009

Posted 08/02/2010

More than 4,500 UK companies were hit by insolvency in the final quarter of last year, according to new government figures.

The latest statistics from the Insolvency Service have revealed 4,566 compulsory liquidations and creditors’ voluntary liquidations took place in England and Wales between October and December 2009.

This represents a decline of 1.7 per cent compared to the previous quarter, while the number was also 1.1 per cent lower than the one recorded in the same period of 2008.

Insolvency trade body R3 stated that these figures were “significantly below” the expected number of business failures, but nevertheless cautioned that companies still remain at risk.

R3 president Peter Sargent reminded business owners that the end of government incentives, combined with an increase in debt recovery activities among creditors, is likely to cause insolvency increases in the near future.

He added: “We should not take this as a sign that the worst is over.”