Insolvency down as large firms perform strongly

FEWER businesses failed in August than in any month since February, Experian revealed today.

Experian’s insolvency index shows the rate of insolvencies fell to 0.08 per cent of businesses.

That compares to a rate of 0.07 per cent in August 2010. In absolute terms 1,391 firms became insolvent in the month, an increase of 12.37 per cent on August 2010.

High levels of variation exist between companies of different sizes and across different regions.

Large firms’ performance improved most strongly, with 0.09 per cent failing last month compared with 0.14 in August 2010.

Those employing between 11 and 50 people had the highest rate, with 0.21 per cent becoming insolvent.

London’s businesses performed better than most, with an insolvency rate of 0.07 per cent. Firms in the north east and west midlands fared worst, with 0.11 per cent failing in each.