Within the first quarter of 2014 and with all the news that the economy is on the turn, liquidations in England and Wales rose by 53.1% compared to Q4 2013. The statistics which were released by the insolvency service earlier this week show that there were 1,072 compulsory liquidations in Q1 2014 compared to just 700 in Q4 2013. Since Q1 2013 total liquidations saw a rise of 10%.
In numbers the figures revealed that in the first quarter of 2014 there were 2,649 Creditor’s Voluntary Liquidations (CVL), 537 Administrations, 205 Receiverships and 142 Company Voluntary Arrangements (CVA) . The total number of companies entering into an insolvency procedure was 1 in 167.
Industries that are suffering include the usual suspects of construction, retail and manufacturing. The construction industry had the highest levels of insolvency in 2013 totaling 2,665, it does seem to be on a downward trend decreasing by 5.5% since 2012; the retail industry was not far behind totaling 2,114 (an increase of 0.6% compared to 2012). Following on from these sectors administration services, manufacturing, accommodation and restaurants rounded off the top five all with over 1,000 insolvencies within their industries.
The reasoning behind the jump from Q4 to Q1 2014 may well be because of suffering Christmas sales or because many people are unwilling to accept their financial position during the festive period.
On the other side of the fence personal insolvencies also saw a post-Christmas rise, increasing by 2.7% to total 24,931 in Q1 2014. The figures comprised of 5,671 bankruptcies, 6,549 Debt Relief orders and 12,711 Individual Voluntary Arrangements.
If you are suffering from any financial problem then please do not hesitate to get in touch.