Rates of insolvency ‘are continuing to rise’

Posted 15/01/2010

Companies are facing an increasingly large threat of insolvency despite the recent easing of recessionary pressures, according to an expert.

Charles Moses, managing director of industrial auctioneering firm CJM Asset Management, has stated that more firms have been going under in recent weeks than was the case during early and mid-2009.

He told the Scunthorpe Telegraph that his company has seen a “significant increase” in the number of instructions received from lenders to recover assets from insolvent companies since October.

The expert stated that this rising business failure rate has been confirmed by insolvency practitioners and forecast that this trend will persist in the coming months.

He added: “Things have been far busier than in the summer when, theoretically, the recession was at its height.”

This comes after Phil Meekin of business recovery firm Wilson Field told Fresh Business Thinking this week that disruption caused by recent snow and ice will increase the threat of insolvency to struggling firms further still.