Data shows jobs survive insolvencies

Posted 21/08/2012

New research from insolvency trade body R3 has shown that over half (53 per cent) of jobs are preserved during the insolvency process.It was also found by the organisation that 48 per cent of stores survive when a company announces it has been left with no choice but to declare itself insolvent.Lee Manning, president of R3, stated that although insolvency is never good news for a business, the figures show the process can result in significant parts of the firm surviving.”The fact that over 50 per cent of jobs remain intact is positive given the trouble a business is likely to be in at the start of insolvency,” he said.Retail firms were told by the R3 head that they need to change their methods of meeting customer expectations or face extinction in the coming months.Recent figures from the British Retail Consortium showed sales were up by 0.1 per cent in July when compared to data for June on a like-for-like basis.