Number of insolvencies drops from record levels

CORPORATE insolvencies plummeted by over 17 per cent last year, it was revealed yesterday.

The figures show that industry recovered from record high levels of insolvency in 2009.

Around 21,000 businesses declared corporate insolvency last year, down from 25,432 in 2009, according to consultants RSM Tenon.

“We have seen a record decrease in corporate insolvency levels,” said RSM Tenon head of recovery Carl Jackson. However, the number was “still approximately 33 per cent higher than pre-credit crunch levels of 2007,” he said.

One quarter of all corporate insolvencies last year were in the business services sector, which includes IT, advertising, security and design companies. RSM Tenon fears that more businesses could collapse this year, however, due to factors such as the VAT rise and cutbacks in the HMRC Time to Pay scheme.