Business Bankruptcy Figures Fall 20%

The amount of companies in the United kingdom which failed within the second quarter of 2010 has dropped almost twenty per cent upon the particular timeframe in 2009.

The most up-to-date Business Failures Report from credit reference company Equifax displays a 19.1 per cent year on year fall and a decrease of 7 per cent throughout the 2nd quarter compared with the first three months of 2010.

A total of 7,175 businesses went bankrupt in between April and June, according to the report, dropping from 8,874 in the exact same interval during 2009.

The document demonstrates that the services industry experienced the greatest level of business bankruptcy in the 2nd quarter, achieving 1,938, but nevertheless falling from 2,247 year on year. Transportation and communications was the very best performer, with failures falling just over 34 per cent on last year from 313 to 206.

Mr. Nic Beishon, head of Equifax Commercial Information Solutions, said: “Our latest report appears to reflect the very close control businesses have been putting on cash flow and costs. Beishon explained that overall, 6,409 businesses went bust in the second quarter of 2008 – there were 7,175 failures in the second quarter of 2010.

He added: “That’s still an increase but certainly a much smaller jump than in 2009 when failures in the second quarter hit 8,874.”