Receiverships feature prominently in latest government statistics

A new set of government statistics have indicated that there were a total of 276 receiverships among the 1,007 corporate insolvencies which were recorded in the fourth quarter of 2012 across England and Wales.


The figures, published by The Insolvency Service, appeared to show remarkably little change in comparison to figures from Q3 2012. However, when the figures are set against those from the previous year there is a notable difference.


The power of statistics


277 recorded cases of receivership were reported between July and September 2012, which was just 1 less than the figure reported in the following 3-month period.


However, the overall figures for 2012 indicate that a total of 4,593 corporate insolvencies (including 1,222 receiverships) were recorded for the entire year.


The total figure represented a decrease of 7.6% compared to 2011, which suggests that there is certainly merit to the idea that the UK is gradually moving towards a more stable financial climate.


Hotel sales drive receivership boost


A separate report by Jones Lang LaSalle appears to indicate that administrations or administrative receiverships increased significantly between 2010 and 2013, with enforced hotel sales cited as one of the key drivers of this trend.


The report indicated that £1.62bn of UK hotels had been sold by companies who found themselves in a distressed financial position over the 4-year period.


The 2011 sale of 42 Marriott hotels which were forced into receivership is one of the key examples of this trend gathering momentum.


Contacting the insolvency specialists


A corporate insolvency specialist such as Moorfields can assist business leaders, financial directors and stakeholders to deliver pro-active solutions for their business, as well as advice on how to adapt to the ever-changing economic landscape.


This could be particularly useful given how uncertain the immediate future could be for companies across the UK in 2013.


If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

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