RETAIL insolvencies fell to pre-recession levels this quarter, according to research from PricewaterhouseCoopers (PwC).
Just 360 firms went bust in the third quarter, a drop of 11 per cent from the second and a massive 26 per cent reduction on last year.
PwC believes the improvement will be continued as most of the weaker firms on the high street have already gone bankrupt.
The retail figures echo a wider trend, with a total of 3,313 companies becoming insolvent in the third quarter of 2010 – a fall of 18 per cent on the previous quarter and 29 per cent fewer than the year before.
Mike Jervis, partner in the business recovery services practice at PwC, said: “The reduction in insolvencies reflects the expectation and hope that more favourable conditions will return and a viewpoint that alternative options to insolvency are being considered.
“UK businesses are certainly not out of the woods yet as we expect looming public sector cuts will hit the bottom line of many public sector suppliers. Companies within the construction and service industries could potentially be among the worst hit.”