Corporate failures buck trend by shooting up almost 10% in Q2
Published at 11:20 AM on 02 August 2013
PwC's analysis of today’s national corporate insolvency statistics found the number of company failures rose by almost 10% as parts of the retail and property sectors continue to suffer.
This increase on the first three months of the year- when companies tend to struggle after the Christmas period- is unusual, PwC says.
5103 companies entered insolvency in the first quarter of 2013. This is an increase of 9.5% on the first quarter of 2013 when 4616 businesses collapsed.
622 companies went into administration this quarter compared to 557 in Q1 2013.
There were 160 Company Voluntary Arrangements (CVAs) rose in Q2 2013 compared to 142 in
the first three months of 2013.
However 192 companies went into receivership compared to 236 in the first quarter of the year.
In response to today's national corporate insolvency statistics, Mike Jervis, business recovery partner at PwC, said:
"This increase is in corporate failures is surprising in light of the recent GDP figures. It’s unusual to see insolvencies rise from Q1 to Q2. The first quarter has historically been the peak for insolvencies. Drilling down into the numbers, this is being spurred by increases in the retail and property sectors.
“After the shocks of Q1 when household names disappeared, it shows that we are not out of the woods yet- especially on the high street and in the real estate sector.”
Notes for editors
· The Official Insolvency Statistics for Q2 2013 for England and Wales were released
on 2 August 2013.
· The Tribunals, Courts and Enforcement Act 2007 introduced a new route into personal
insolvency called the debt relief order (DRO), which came into effect from 6 April 2009. DROs provide debt relief, subject to some restrictions, and are suitable for people domiciled in England
and Wales who do not own their own home, have little surplus income (no more than £50 a month), assets (other than possibly a car) not exceeding £300, and less than £15,000 of debt. DROs do not involve the courts; they are run by The Insolvency Service in partnership with skilled debt advisers, called approved intermediaries. A DRO lasts for a period of one year before discharge and, as for bankruptcy, there are penalties in place for debtors who seek to abuse the process.
· Additional information may be found on The Insolvency Service website here:
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