THE number of troubled companies falling into insolvency in England and Wales rose for the second successive quarter, according to latest figures.
Statistics from the Insolvency Service show administrations rose by 22% to 782 in the first quarter of 2011 against the previous three months.
Joe McLean, partner at Grant Thornton’s recovery and reorganisation practice in West Yorkshire, said: “The rise in corporate insolvencies results from a combination of factors that are dragging economic growth to a snail’s pace.
“Rising global commodity prices are putting pressure on businesses at the same time that demand is falling.
“Of particular note is the volume of distressed retailers we are dealing with. This is unsurprising given the rise in input prices and increase in VAT which comes at the same time as the Government and households implement austerity measures to reduce their debts.”
Among other figures, the number of companies entering liquidation rose by 3.7% to 4,121 during the first quarter of the year compared with the final quarter of 2010. The latest figure is up by 2% on a year ago.