The number of company failures in the England and Wales increased by 4.5% from 20,901 in 2010 to 21,843 in 2011. In the South East, South West and London 1 in 70 businesses became insolvent .
Despite interest rates remaining low the economy is still expected to worsen over the forthcoming year. There will be a rise in fuel food and travel; however wages are expected to remain stagnant.
Formal company insolvencies are predicted to rise in 2012 due to the higher levels of distress. The lack of creditor and supplier leniency will play a part in this, as when consumer confidence falters companies who rely on consumer spending will suffer when they start to tighten their wallets.
If your company gets hit hard and is struggling financially then contact Beer & Young for some advice on the best way to move forward.
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