- Monday, 19 April 2010The numbers of UK corporate insolvencies is decreasing as businesses turn to other solutions, according to PricewaterhouseCoopers UK (PwC), a trend which could save jobs and limit the number of consumers with
debt management problems.
During the first quarter of 2010, 4,251 companies became insolvent, which represents a four per cent decrease on the last three months in 2009. There is also a reduction of 20 per cent compared to the same period last year.
Construction, manufacturing, retail and real estate are the worst affected sectors but they have also seen an improvement with retail experiencing a 33 per cent decrease in the number of insolvencies over the same quarter last year.
Mike Jervis, partner in the business recovery services practice at PwC, said: "While UK businesses are still suffering from the effects of the global recession, many will be breathing a sigh of relief as more signs of a recovery become apparent."
He added that businesses are more likely to use financial restructuring, company voluntary arrangements and arrangement schemes instead of insolvency.
London still has the largest number of insolvencies with 1,075 but compared to the same quarter in 2009, there has been a decrease of 19 per cent.
Despite this increased positivity, research from the University of Manchester cited in the Observer indicates that the recession has left the UK's rate of joblessness at the same level it occupied in 1999.
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