Posted: Friday, 1 May 2009 @ 18:06
The Insolvency Service today published their statistics for the number of company insolvencies for the 1st quarter of 2009.
These show that there were a total of 4,941 liquidations in England and Wales (an increase of 56% compared to a year ago).
Of these, 1,579 companies were wound up by a court (an increase of 43.6% over the year) and 3,362 companies put themselves into liquidation (an increase of 62.5% over the year).
From our experience, the main cause of liquidations is cash-flow problems or disputes. More and more companies are raising disputes at the moment and, unless managed effectively, they can drain the life-blood out of a firm.
If companies followed our credit control guidance and took early legal advice as soon as a dispute raised its head, these statistics could certainly be a lot lower. There has certainly never been a more important time for dealing with disputes at the outset before they escalate.
Gary Cousins
Insolvency and Dispute Management Solicitor
For free advice on this topic please call us on 0845 003 5639.
Blog by Gary Pascual
Gary has been providing legal advice to shareholders, directors and business owners for over 25 years. Specialising in dispute resolution Gary is based in Birmingham with clients throughout the UK and overseas.
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