Expert Assesses New Figures

Today’s announcement that the number of company insolvencies in England and Wales has fallen doesn’t tell the true story, according to a corporate recovery partner at Irwin Mitchell.

Statistics released today by the Insolvency Service reveal a 13.9% fall in the number of company insolvencies during the last three months compared to the same period last year. The number of Company Voluntary Arrangements decreased by 18%, whilst Administrations fell by 35%.

Chris Jones, Partner in the Corporate Recovery team at Irwin Mitchell, said:

“The economy has obviously moved out of recession over the last 12 months so it’s perhaps not too surprising that the number of company insolvencies has fallen.

“This doesn’t mean fewer businesses in having trouble. Companies are now far more willing to get into discussions about their financial situation and enlist the help of insolvency practitioners who can proactively assist in coming to an agreement with creditors.

“I expect that the number of these informal arrangements will continue to rise – particularly as the economic headwinds look set to get stronger in 2011.”