Number Of Failures Falls 17%

The number of businesses entering insolvency in the UK fell during October when compared to statistics from 12 months ago, new figures have suggested.

Research by Experian revealed that 1,635 companies faced such arrangements during last month, which marked a 17 per cent fall from 2009.

In terms of regional performances, the study revealed that the north east’s insolvency rate fell from 0.14 per cent to 0.11 per cent. Yorkshire also experienced a decline, with the number of failures dropping from 0.15 per cent to 0.07 per cent.

Commenting on the figures, Andrew Walker, Partner in the Corporate Recovery team at Irwin Mitchell, said they had much in common with the recent statistics published by the Insolvency Service.

He outlined: “Both studies have shown drops and this is not particularly a surprise when considered in relation to the improvements which have been seen in the economy across recent months.

“However, it must also be noted that the drop may be linked to the number of firms which are now keen to actively get involved with securing their future with the help of insolvency experts and the relevant creditors.

“Such efforts are a positive step forward and I hope that more companies which may be facing difficulties look to make such progress in the coming months.”