Business insolvency barrage eases down

Fewer firms in England and Wales hit the wall in first quarter than either Q1 2009 or Q4

According to the Insolvency Service 4,082 firms in England and Wales hit the wall in Q1

Official statistics reveal the number of corporate insolvencies eased significantly during the first quarter of 2010.

According to government body the Insolvency Service, 4,082 firms in England and Wales hit the wall in the three months to 31 March.

This represents an 18 per cent drop year on year and is down by 8.4 per cent on the previous quarter. In the 12 months to 31 March, about one in 120 active firms went into liquidation, down from one in 114 in the previous quarter.

Last year saw a big spike in creditors’ voluntary liquidations (CVLs), which make up about two-thirds of all insolvencies.

But for Q1 CVLs fell 19.1 per cent year on year and 11.4 per cent sequentially to 2,768. Compulsory liquidations fell by 14.8 per cent annually and 1.3 per cent sequentially to 1,314.

However, the number of individual insolvencies continues to rise and hit a record 35,682 in Q1, up by 17.9 per cent on last year.