Reseller insolvencies hold steady

Only 137 UK resellers hit the wall in first half of 2009 but the worst could be yet to come

Insolvency Service Building: Reseller insolvencies spiked just five per cent in 1H

The expected surge in reseller insolvencies still hasn’t occurred, figures from Graydon UK confirm.

According to the credit reference firm, the number of reseller insolvencies rose just five per cent year-on-year in the first six months of 2009 to 137.

Mark Ancell, head of intelligence of Graydon UK, said the numbers were a “good sign for the general market”, but warned the channel to brace itself for a spike in insolvencies in Q4.

“I would envisage an increase in the numbers towards the end of the year,” he cautioned.

“I think it will predominately be down to further reductions in insured cover, lack of available credit and a poor summers trading. All of these factors combined will undoubtedly push further companies into insolvency.”

Of the 137 first-half insolvencies, 86 were voluntary liquidations, 23 were compulsory liquidations and 28 were receiver appointments.

There were 130 reseller insolvencies in the same period last year and 130 in the second half of 2008.

2008 was a dire year for insolvencies compared with 2007 and 2006, when there were just 167 and 174, respectively.