October 06, 2010
Corporate insolvencies are declining but critics have suggested that such promising recent figures could be nothing more than a “one-off”.
According to accountants PricewaterhouseCoopers (PwC), 3,313 companies went to the wall in the third quarter of 2010 - an 18% drop compared to the second quarter.
But critics have suggested that such figures represent a small number of sectors and many firms are still struggling to stay afloat in the recession’s wake.
PwC says manufacturing has witnessed the greatest improvement in insolvencies, 41%, while real estate has also seen a decrease in insolvencies of 33%, construction 20%, and 28% in retail.
Regionally, London saw a 35% improvement in the rate of insolvencies, but it's the East Midlands which really seems to be taking a hit. Insolvencies accelerated 4% in the last quarter, PwC claims.
"UK businesses are certainly not out of the woods yet," says PwC, "as we expect looming public sector cuts will hit the bottom line of many public sector suppliers."
Companies worried about bailiffs closing in have been encouraged to seek advice as soon as possible and keep their heads above the insolvency tides still sweeping across Britain.
