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Business rescue rather than burial - it's official
Published on: 18 November 2004
Recent statistics published by the Insolvency Service highlight the growth of the culture of business rescue rather than business burial with the continued success of administration as the preferred treatment for distressed businesses, says local business rescue expert.
The quarterly figures show falls for corporate insolvencies, down by 7 percent, compulsory liquidations, down by 1.5 percent and creditors voluntary liquidations, down by 17 percent compared to the same period last year. Receiverships are also substantially down with a fall of 39 percent on the same period last year but administrations have shot up significantly showing an increase of 150 percent.
Carl Faulds, Managing Director of Whiteley based Portland Business & Financial Solutions, said: The impact of the new administration process, introduced last year as a viable alternative to liquidation, is now showing up strongly in the statistics with the number of companies entering administration rising for the fifth successive quarter.
He continued: Administration provides a breathing space to enable the prospects of rescuing a business to be properly considered. The type and size of business going into administration varies significantly. We have dealt with Goodmans Loudspeakers, which operated from substantial premises in Havant, Mexico and Hungary, and we have also dealt with a film company, an office furniture supplier and a storage facility provider. Not all such companies going into administration will survive but at Portland we have embraced the rescue culture and have invested in creating two specialist teams with the skills and resources to deal with these types of cases and as a result we have been able to achieve a significant number of successful outcomes.
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