The number of companies entering into liquidation in the first quarter of 2011 increased by 3.7% on the previous quarter and by 2.1% on the first quarter of 2010.
This increase in the number of companies in England and Wales going into liquidation, follows a decline in the numbers of failures between April 2009 and January 2010.
Commenting, Eleanor Richards, of Crawley based law firm, stevensdrake, said: "It is difficult to predict whether or not these insolvencies will now increase as rapidly as they did between September 2007 and the peak back in March 2009. However, these figures do paint a rather disturbing picture for those analysts who thought that the number of businesses failing was slowing down following the 2009 high." Adding: "Looking ahead I think that the predicted interest rate hike will add more pressure to those firms already in difficulty and potentially lead to more company failures."
On the personal insolvency front, the number of bankruptcies fell by 31.3% compared with the same quarter last year. The number of individuals entering into Individual Voluntary Arrangements was also down on the same period last year, whilst Debt Relief Orders, which are designed for individuals with debt of less than £15,000 increased in number - up by just over 20% from the corresponding quarter in 2010.
Published - May 2011
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