Number of administrations is falling.

6 July 2011

Our research has shown that the number of notices of businesses going into administration in London actually fell in the last 3 months when compared to the first 3 months of the year. This pattern of a fall of 16% was repeated across England and Wales where 650 businesses were advertised to be in administration in the three months to 1st April when compared to 550 in the 3 months to end of June.* This is despite the headline grabbing High Street failures in the last few weeks.

The extended holiday period in April and early May may have affected the figures. So we are not drawing too many conclusions from this data at this stage. However, anecdotal evidence from the insolvency profession has been that there have been fewer bigger businesses going into administration. Administrators are more normally called in to deal with struggling businesses where the aim is to rescue all or part of the business as a going concern. The costs of the process are usually higher than those of a CVA or Liquidation.

*This data was taken from the Stubbs Gazette.