Business Rescue Service give their reaction to news that Company Insolvencies are higher than ever.
(1888PressRelease) August 06, 2011 - Economists are warning the UK economy is still plagued by high rates of company insolvency. Business rescue organisations report high numbers of enquiries as both compulsory and voluntary liquidation figures remain troublingly high. Last year's surge of firms collapsing had not been seen in such high numbers since almost a decade ago in 2002, when the dotcom bubble notoriously imploded.
Across the UK, there are signs the economy is still under considerable strain. Some 175 firms entered company insolvency during the first half of last year alone, representing a surge of over 40% on the previous year's figures. Just over halfway through this year, the picture is still tremendously volatile. Many household name high street chain retailers have felt the impact of a dip in consumer confidence. Some are indeed now closing their doors for the last time. Many analysts point to inflation, VAT and price hikes for domestic energy compounding the problems. Some also note the Government austerity measures are markedly affecting many industries.
"There are indications that it could be some time before markets return to anything like their previous levels of stability. This is likely to mean an increase in the number of firms opting for voluntary liquidation or administration, as we have seen with some very big names of late. It's important for all sizes of companies to realise there are a variety of options if the firm is in financial difficulty. Support from a professional business turnaround service can sometimes turn the situation around. At the very least, it can present a failing business with the most advantageous options should it finally need to exit trading" a spokesman from The Business Rescue Service said today.
Experts have talked about the possibility of a double dip UK recession since the earlier days during the global economic downturn. Many firms are now reacting by shelving plans for expansion and cost cutting. And for small businesses, one factor has not changed this year. Their enduring problem is that banks are still not readily providing them with the levels of finance seen before the downturn. Banks may be unwilling to extend overdraft facilities or offer other credit products under routine circumstances. The cost of business borrowing also remains relatively high.
"There are a lot of analysts predicting increased numbers of business failures because of the challenging combination. Revenues may be down, combined with a lack of ready funding. Businesses should be aware that turnaround professionals can look at their entire operation and deal with a multitude of problems before they come to a head. They can discuss commercial finance alongside other problems, like mounting tax arrears and problems with suppliers. If a business gets the right support early enough, it may be possible to avoid company insolvency altogether. It's also possible to sometimes gain some breathing space when that isn't possible, to allow the company to trade its way out of the problems" said a Business Rescue Service spokesman.
Company Directors and managers can gain immediate advice from the Business Rescue Service by calling 0845 468 2395, or send an email by visiting www.businessrescueservice.co.uk.
Business Rescue Service give their reaction to news that Company Insolvencies are higher than ever. 
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