Insolvency figures 'do not paint the full picture'

New data revealing that the number of insolvencies being registered in the UK has risen slightly does not paint the whole picture when it comes to the stability of the country's organisations, it has been claimed.

David Chubb, partner, business recovery services, PricewaterhouseCoopers, made the comments after new official corporate insolvency figures showed that 465 companies entered insolvency in the second quarter of 2011 - an increase of 1.1 per cent on the same quarter of 2010.

However, there was a seasonal reduction in total insolvencies in the second quarter which decreased by 2.6 per cent compared to the first quarter, and Mr Chubb said this indicates that financial institutions are doing what they can to help firms out.

"On a positive note, there is a sense that banks and other stakeholders are supporting struggling businesses whenever they can to try and avoid insolvency at all costs, but given the economic outlook, this will be a continuing challenge," he commented.

It comes after Roger Tweedy, director of research at the Recruitment and Employment Confederation, said employer confidence is now at a 12-month high, painting a picture of "cautious optimism" among UK firms.

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Posted by John Oak and Wayne Bly

Source: The Sales Director News