Insolvencies rise in East Midlands
The number of corporate insolvencies in the East Midlands increased during the first quarter of 2011, bucking the UK-wide trend of falling numbers. That’s according to research from PwC.
According to the survey, the East Midlands was one of just three regions in the country to experience an increase in the number of corporate insolvencies.
Nationally, 3,657 companies became insolvent in the first quarter of 2011, compared to 3,829 in the last quarter of 2010 – a 4.5 per cent decrease. The level of insolvencies fell by 14 per cent compared to the first quarter of 2010.
In the East Midlands, the number of corporate insolvencies during the first quarter of 2011 rose from 173 in Q4 2010 to 211 in Q1 2011 – a rise of 22 per cent. Compared to the same quarter last year, however, the number of corporate insolvencies in the East Midlands during the first quarter of 2011 has fallen by 11.7 per cent.
Eddie Williams, director in the business recovery services practice at PwC in the East Midlands, said: "The last quarter of 2010 was a much better one for the East Midlands – we saw the number of corporate insolvencies fall by 16% compared to the previous quarter. But as the firm’s latest analysis shows, there has been an increase in the number of corporate insolvencies locally since the start of the year.
“While the year-on-year comparison shows that the trend of a decline in the number of corporate insolvencies in the East Midlands is continuing, it is important to avoid complacency.”
