We reported in our last newsletter that the rates of insolvencies generally have fallen in recent times. A look at the main news currently seems to show a very mixed picture. Latest news from the Office for National Statistics shows that the economy has slowed overall in the first quarter particularly in the construction and manufacturing sectors whereas the service sector, which is now the biggest part of the economy has grown by 0.6%.
Particular sectors such as retail have again shown some high profile insolvencies such as BHS and Austin Reed stores, both of which have recently gone into administration with the BHS demise attracting a lot of media attention. In addition we understand that care home insolvencies have increased over the past year by around 18%.
Our recent experience is that we are seeing an increase in enquiries and formal appointments. We continue to see an increase in solvent liquidations which more recently may be as a result of the changes to the treatment of company dividends. We have also recently undertaken a couple of company voluntary arrangements which is encouraging news for rescue and recovery enabling those businesses to restructure and so saving jobs and returning more funds to creditors.
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