Company liquidation numbers soar

The number of companies falling into liquidation has leaped by 56% to 4,941 in the first quarter of 2009 compared to the same period a year ago. This is a rise of 7.1% on the previous quarter, according to latest figures from the Insolvency Service, made up of 1,579 compulsory liquidations and 3,362 creditors voluntary arrangements. Additionally, there were 1,783 other corporate insolvencies in the first quarter comprising 316 receiverships, 1,311 administrations and 156 company voluntary arrangements. This represents an increase of 54% on the same period a year ago. Malcolm Shierson, partner at Grant Thornton's Recovery and Reorganisation practice, said: 'As company insolvencies typically lag behind overall economic performance, it is safe to say we haven't seen the worse.' Alan Tomlinson, of licensed insolvency practitioners Tomlinsons said: 'Today's statistics firmly squash the notion that there are any green shoots of recovery out there.' Geoff Carton-Kelly, head of the London Restructuring and Recovery team at Baker Tilly said: 'The lack of a steep rise suggests many businesses that would otherwise expect to be in serious trouble are proving quite resilient. 'Conversely it could mean that insolvencies will rise again as problems currently being deferred will come to rear their ugly heads later in 2009.'
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