Recent figures out show a further fall in the overall number of corporate insolvencies.
There has been a 30% fall in the number of corporate failures recorded this July compared with July 2009. The numbers have fallen the most in respect to smaller businesses with less than 500 employees. However, rates of insolvency are still high in the larger business sector. These figures show an improving economic picture but also reflect the HMRC Time to Pay Scheme and the more widespread use of other insolvency tools such as Company Voluntary Arrangements (CVA). CVAs are the only insolvency mechanism to see a sharp rise - to 242 in quarter 2
Even substantial businesses can benefit from a CVA. KSA Group used a CVA to turnaround a £109m turnover business last year and saved over 3,000 employees jobs.