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Company Insolvencies on the Up |
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The following is an adaptation of an article appearing in www.scotsman.com on July 30th 2005.
THE number of British companies on the edge of insolvency has soared as slower economic growth and higher interest rates inflict pain on thousands of businesses.
Figures from business rescue and restructuring specialist Begbies Traynor show that 7,602 companies ran into "critical" financial problems in the second quarter, a 17 per cent rise on the same period last year.
These firms have petitions to wind up or striking-off notices filed against them, which may force the company to cease trading.
A further 86,154 experienced "significant" difficulties such as sustained trading losses, weak balance sheets, mounting debts or declining turnover. That was a 1.5 per cent rise on a year earlier.
A third of those on the "critical" list were from the service sector (excluding financial services), reflecting the consumer slump. Financial services businesses with similar difficulties doubled to 6 per cent.
The grim report came just days after Granville, the firm behind Tiny and Time Computers, collapsed into administration.
PlaneStation, the UK-listed aviation and property group, also went under this week, forcing the closure of EUjet. Britain´s top airship firm, Advanced Technologies also went bust.
For this and other news items please visit www.debtscotland.com. By registering on the site you will find a host of debt recovery and credit control tools in the “free credit resources” section.
Stephen Cowan
Yuill & Kyle, debt recovery & credit control lawyers, Scotland
79 West Regent Street, Glasgow G2 2AR
scowan@yuill-kyle.co.uk
Direct Dial: 0141-572-4251
www.debtscotland.com
www.ykcreditcheck.co.uk
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