Insolvency Figures For Mid-Sized Firms ‘Unsurprising’

New Research Reveals Latest Business Trends

20.07.2011

New figures which have shown that fewer mid-sized firms are falling into administration are not particularly surprising, according to an insolvency specialist at Irwin Mitchell.

Research by Experian has shown that the rate among firms with 50 to 500 workers in June this year has fallen from the same month last year, with the East Midlands region enjoying the greatest improvement.

Overall, firms with 51 to 100 employees saw their rates fall from 0.23 per cent to 0.19 per cent, while firms with 101 to 500 workers experienced a drop of 0.17 per cent to 0.08 per cent.

Chris Jones, a Partner and insolvency expert at Irwin Mitchell said that such findings should not be treated as a shock.

He explained: The figures aren’t totally surprising as generally we’ve not been seeing a lot of insolvency appointments, despite the high-profile retail casualties which have been claimed by the economic climate in recent times.

“However, rather than being viewed as a turnaround as such, the general consensus among insolvency professionals is that this is indicative of a lack of action on the part of banks, as well as HMRC.

“In fact, while the small rises are a positive step in the right direction, the general view is that there’s as much stagnation as stability amongst in businesses.”