06/02/2009 - Firms in administration trebles
The number of businesses in administration soared in the fourth quarter of last year, with three times as many firms seeking protection from creditors as the year before.
According to the Insolvency Service during the last three months of 2008, 2,018 companies in England and Wales went into administration, in the same period the year before the number was 575.
Fourth-quarter figures for last year saw the number of businesses in administration dramatically increase to 4,820, a huge 92% rise on 2007.
The number of firms going into liquidation also rocketed by more than 50% at the end of last year.
Economists warned that the level of bankruptcies was set to increase as unemployment rose and the problems caused by the credit crunch meant people were no longer able to borrow their way out of trouble.
The increase in bankruptcies is expected to continue into this year as the economic situation worsens.
Overall, 29,444 people were declared insolvent during the final quarter of last year, 18.5% more than a year earlier.
Copyright © Press Association 2009
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