Company insolvency figures rise despite fall in compulsory liquidations

Posted 06/11/2009

The number of compulsory liquidations in England and Wales fell during the third quarter of 2009, according to figures published by the Insolvency Service.

There were 1,301 compulsory liquidations during the quarter, which represents a fall of 12.9 per cent from the corresponding period in 2008.

However, the total number of company insolvencies was 14.6 per cent higher than in the third quarter of 2008 at 4,716.

There were 3,415 creditors voluntary liquidations during the period – a rise of 30.2 per cent from 12 months earlier.

The Insolvency Service figures also revealed there were 194 company voluntary arrangements, 410 receiverships and 974 administrations between July and September 2009.

Its report also hinted at the full extent of the impact of the economic downturn on businesses, as it revealed that one in every 114 active companies in England and Wales went into liquidation during the 12 months to the end of September 2009.

The news comes just days after the Federation of Small Businesses warned the government that increasing the tax burden on small companies could push more of them towards insolvency and cause unemployment to rise.