Number of business insolvencies falling

Business news from the Lancashire Evening Post
Business news from the Lancashire Evening Post
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The North West is the country’s biggest improver when it comes to the number of business insolvencies being recorded, new research has revealed.

According to findings compiled by Experian’s Business Insolvency Index, there were 2,357 insolvencies recorded in 2012 – a drop of more than seven per cent on 2011 figures.

But the actual number of failed companies in the region is still higher than anywhere else outside London and the South East. Every other region saw less than 2,000 businesses fail last year.

Max Firth, managing director for Experian Business Information Services UK&I, said: “Following the slight upturn in 2011, 2012 has seen the business insolvency rate fall and then remain stable throughout the year. In particular, firms that suffered most during the downturn were the ones to see the most significant improvements.

“The rate of insolvencies is significantly lower now than when it was at its peak in 2009 at 1.25 per cent, but there is still a way to go before we reach the pre-recession rate of 2007, which stood at 0.97 per cent.

“This is highlighted by the slight increase in insolvencies amongst larger businesses.”