Company liquidation rate hits 1 in 138 in Q1 2012

Published on May 4, 2012 by Crawfords Accounting

Figures from the Insolvency Service show that the company liquidation rate was unchanged in the first quarter of 2012.

Approximately one in every 138 active registered companies went into liquidation during the quarter, a percentage rate of 0.7% and no change over the previous quarter.

Despite the economy only recently dropping into a ‘double-dip’ recession pattern, the statistics are an indication of how many organisations of all sizes were working hard to avoid company liquidation even during the brighter moments of the past few months.

The percentage remains much lower than in previous years – over the past quarter-century, the average rate of company liquidations was 1.2%, peaking at 2.6% in 1993.

However, around that time in the early 1990s, there were only 900,000 active registered companies, a figure that has grown to 2.4 million in early 2012.

As a result, the long-term change in the percentage should not be taken as an indication that fewer companies are going into administration.

Our insolvency practitioners can help if you are concerned about your risk of going into administration – in a climate of frequent company insolvencies, let us help you to avoid becoming another statistic.

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