Member Article

Insolvencies on the rise

MORE UK firms are reportedly experiencing serious financial difficulties than at any time in almost two years, according to a new study.

Almost 148,000 firms had serious problems in the final three months of last year, the first year-on-year rise in the past seven quarters, said insolvency specialist Begbies Traynor.

Government cuts were exacerbating the problem, it said.

The report forecast a 10% rise in insolvencies in 2011, which would lead to 23,500 firms being affected.

Compared with the July to September quarter, there was an increase of 20% in the number of companies experiencing “significant” or “critical” financial problems.

This was posted in Bdaily's Members' News section by Ruth Mitchell .