U.K. Insolvency Statistics Show Increase in Failures

The Department of Trade and Industry recently published statistics showing insolvencies in England and Wales in the fourth quarter of 2002. There were 4,323 company insolvencies in that period, an increase of 11.1 percent from the previous quarter and an increase of 14.9 percent compared to the same period a year ago. According to the Department, 1.1 percent of active companies became insolvent in the 12 months ending in the fourth quarter 2002, the same as in the previous quarter and the corresponding quarter in 2001.

There were 7,917 consumer bankruptcies in that period, an increase of 1.6 percent from the previous quarter and an increase of 7.8 percent compared to the same period a year ago.

The publication by the Lord Chancellor’s Department of statistics for company winding-up petitions (involuntary bankruptcy) and creditors’ and debtors’ petitions for consumer bankruptcies showed a large increase. Company winding-up petitions were up 21 percent while creditors’ petitions for consumer bankruptcies rose 32 percent and consumers’ own petitions rose 10 percent.

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