According to the latest figures published by a leading insolvency firm, the number of unavoidable liquidations in England and Wales fell in the 3rd quarter of 2009. During this period, there were 1,301 compulsory liquidations, which is a drop of 12.9 percent compared to the same period in 2008.
However, the overall number of company insolvencies was 14.6 percent higher compared to the 3rd quarter of 2008. During this period, there were 3,415 creditors’ voluntary liquidations, which is a rise of 30.2 percent on the past year.
The figures from the insolvency firm also revealed that there were 974 administrations, 410 receiverships and 194 company voluntary arrangements between July and September 2009. Reports also hinted at the impact that the economic recession had on businesses, as it showed that 1 in every 114 active companies in England and Wales went into liquidation in the 12 months leading to September 2009.
The report came just days after the Federation of Small Businesses informed the government that the increasing tax burden on small companies will eventually push them towards insolvency, which will mean a rise in unemployment.
If you are facing financial difficulties in your business, company liquidation and business liquidation are definitely worth considering.