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The recession and business failures - behind us now??
June 2010
You may think that the recession is now behind us but fresh research by R3, the Insolvency Practitioners trade group indicates on the contrary.
R3’s research indicates that, during the 1990’s, the peak in the number of corporate liquidations came five quarters after the return to growth and the high point for personal insolvencies came 18 months later.
In the 1980’s the lag was even greater: personal insolvencies peaked three years after the official end of the recession and corporate insolvencies took another year to reach that point.
The lag occurs because it takes time for any tangible benefits of recovery to feed through to companies. R3 predicts a similar lag in this time and estimates that corporate insolvencies will reach 28,000 this year and remain high in 2011, at about 27,000.
If you would like to have a chat with our Insolvency experts please contact Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw on T: 0114 251 8850 or email: chris.brown@hartshaw.co.uk.
