Business insolvency fell in January, figures show

Posted 10/03/2011

The number of businesses facing insolvency fell by ten per cent in January 2011, statistics have revealed.

According to Experian’s most recent Insolvency Index, 1,266 businesses went under throughout the month, compared with 1,426 in the same period of 2010.

Managing director of Experian pH Max Firth was encouraged by the figures, as they demonstrate that the economic climate appears to be taking a turn for the better.

“Our analysis shows that business failure rates are falling steadily and the financial strength of the UK’s business community is improving,” he commented.

Despite the apparent upturn in fortunes for companies, failure rates in two parts of the UK went up during the month.

The north-west experienced a 33 per cent increase in insolvency cases compared to January 2010, while 50 firms in Wales failed – marking a rise of 56 per cent.

Last year, a study conducted by the Association of Business Recovery Professionals noted that 850,000 enterprises across the UK were encountering a reduction in profits.