Now corporate insolvencies are on the up!
The number of compulsory liquidations in England and Wales was up by just over 50% at 53.1% during the first quarter of 2014, compared with the last quarter of 2013. The statistics from the government's Insolvency Service revealed there were 1,072 compulsory liquidations between January and March 2014, compared to 700 in the third quarter of 2013. Overall corporate liquidations grew by 4.8% and 4.9% quarter-on-quarter and year-on-year respectively.
Julian Watson comments 'bizarrely the.increase in insolvencies i o ur view will coincide with a strengthening of the economy. Althought it seems counter-intuitive, you would not want to outlay the very high court fees involved with compulsory petitions unless you felt that you had a good chance of recovering your money either before liquidation or upon an investigation by a liquidator. Furthermore, why would you put a company into administyration and lose its debtors, unless there was a profitable business starting to emerge? We feel that corporate insolvencies are likely to increase as the recovery takes hold.'