According to The Insolvency Service 4,001 companies fell into liquidation during the Q-3, a 10.5% rise on the previous three months and a 26.3% increase on the same period last year. The steep rise in liquidations is put down to markedly slowing demand, elevated input costs and very tight credit conditions. Despite yesterdays’ 1 1/2% rate cut, and despite lower energy and commodity prices, the Insolvency Service expects company liquidations “to surge in coming months given the likely depth and length of the recession.”
Meanwhile, the number of individuals declaring themselves insolvent rose to 27,087 over the same period (July-September), an 8.8% rise on the Q-2, and an increase of 4.4% compared to a year ago.
