So, we finally have the statistics for 2011 business insolvencies. Much has been made of the last quarter's results which show an increase but the important thing is to look at the figures over a full year. Look at these figures:
CVAs in 2010 765
Administrations 2010 2831
Receiverships 2010 1302
Liquidations 2010 16045
As predicted, the figures are pretty flat with a bit of a jump in liquidations which is most apparent in the retail and leisure sectors. Receiverships have gone up also but this does include commercial property that is subject to an LPA receivership appointment, so is not strictly a corporate insolvency event.
Keith Steven said, "the recovery in growth in the UK has not materialised and ironically that is when insolvency numbers for companies will rise. Having said that KSA Group is seeing a large increase in winding up petition action by HMRC (witness Portsmouth City) and we, as a firm, are expecting to double the number of CVA deals this year compared to 2011".
Hopefully more companies will turn to CVA as the best rescue tool.