Numbers of insolvent businesses up in third quarter

RSM Tenon has predicted that a report due to be released tomorrow will reveal that the corporate insolvency figures for the third quarter of 2011 has increased by 11 per cent on last year’s figure. This equates to another six businesses having failed every working day during the last quarter.

It is thought that the new figure will reveal an additional 465 businesses have entered administration in July, August and September this year, taking the total to 5,500.

The increases in insolvency has affected most business sectors, with business services up 20 per cent to 1,435; retail increased by 19 per cent to 345; and hospitality and tourism also suffering an increase of 14 per cent to 428. The communications industry has managed to escape this trend with an 18 per cent decrease in insolvencies to 63.

Across the UK, Wales and East Anglia fared the worst with 40 per cent and 34 per cent increases in company insolvencies....Read more.

Source: Hanna Sharpe | Business Sale Report | http://www.business-sale.com