Monday, 9 February 2009

Company liquidations up 50%

On Friday the BBC had a sobering news item on their website that led with the fact that the fact that corporate liquidations (the end stage of a company going under) in the last three months of 2008 were up 52% on the last three months of 2007.

But more importantly, actual liquidations and receiverships were up 220% on the same period to the year before.

This accounts for one in every 150 trading companies.

As you can see from the graph below from The Insolvency Service , there has been a significant jump in company failure during quarters 2,3 & 4 in 2008.

What does this mean for all of us? No one is going to be unaffected and all companies and those responsible for credit control should be checking and double checking all the available information before opening or extending a line of credit.

This is why we offer a company monitor service for free and want you to use it. If you have any questions or need help setting up an account or adding/changing the companies that you monitor please contact us.