Business insolvencies down in east of England

Posted 22/03/2010

The number of business insolvencies in the east of England declined sharply in February, according to a new report.

Figures compiled by information services company Experian show that there were 144 business insolvencies in the region last month – down from 221 in the corresponding period of 2009.

The statistics reflected the national trend, which saw the number of business insolvencies fall from 2,160 in February last year to 1,834 in February 2010.

However, the figures represented a slight rise from January 2010, although January is traditionally a slow month for insolvencies.

Rolf Hickman of Experian said that although the figures paint an optimistic picture, certain types of company are still at risk of failing.

“Mid-sized businesses, which are seeing the highest rates of insolvencies, are too large to be flexible and too small to rely on a strong and established structure,” he explained.

The news comes just days after business minister Ian Lucas revealed the government plans to launch a consultation about introducing more regulation for pre-packaged administrations in a bid to build confidence in the process.