Company Voluntary Liquidations (CVLs) are up by 62.9% on the same quarter in 2008.
Peter Sargent, President of R3, the insolvency trade body explains: “A Company Voluntary Liquidation is the insolvency mechanism by which company directors voluntarily wind up their own company. In good times it is generally used for companies which are no longer viable, for example due to advancing technology; or companies working on projects which have naturally come to an end. However, we believe that in this case there have been numerous company directors who have come into the New Year, looked at the gloomy economic outlook, and decided the best option is just to call it a day.”
A report from the service also shows there were 1,783 other corporate insolvencies in the first quarter of 2009 comprising 316 receiverships, 1,311 administrations and 156 company voluntary arrangements.
The manufacturing industry makes up a large number of all insolvencies and has seen a rise of 23 per cent in the last quarter. Other large increases have been seen in construction, which has seen a 50 per cent increase in administrations (158 compared with 104). Restaurant insolvencies have gone down by nearly a third (33 down to 26), giving credibility to the theory that aggressive promotions are buoying the industry.
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