The number of personal insolvencies in England and Wales in the third quarter rose by 6.6% from the last quarter to 35,242. This is an increase of 28.2% on the same period a year ago, a record high.
In total, 6,114 businesses across England and Wales entered into insolvency in July, August and September of this year. Within these numbers, there has been an increase in receiverships which are particularly relevant in distressed real estate situations. Comparing the first three quarters of 2009 against the first three quarters of 2008, we are seeing an increase of 32% in total numbers suggesting 2009 is looking to be a watershed year for insolvencies.
Mike Jervis, partner in the business recovery services practice at PricewaterhouseCoopers LLP, commented: "There is no question that UK companies have been hit very hard by the recession, but now is not the time to relax. Experience shows that there is spike in the number of businesses going bust as an economy recovers and companies need to remain obsessively focussed on costs, cash and turnover if they do not want to become one of those statistics."