The Grim Reaper of insolvency is on the march. Statistics showing insolvencies in the third quarter of 2008 are published today by the Insolvency Service.
Here’s the grisly picture.
There were 4,001 compulsory liquidations and creditors’ voluntary liquidations in total in England and Wales in the third quarter of 2008 (on a seasonally adjusted basis). This was an increase of 10.5% on the previous quarter and an increase of 26.3% on the same period a year ago. This was made up of 1,483 compulsory liquidations (which are up 10.9% on the previous quarter and 16.1% on the corresponding quarter of the previous year), and 2,518 creditors voluntary liquidations (which are up 10.2% on the previous quarter and 33.2% on the corresponding quarter of the previous year).
This news release was swiftly followed by this statement from Catherine Matthews, partner at licensed insolvency practitioners, Tomlinsons.
"They underline just how tough things are for the moment for companies,and that the recession is really starting to bite. A 26% rise on the same periodlast year, and a steady increase quarter-on-quarter, simply can’t be ignored.These are desperate times for many businesses."