By Daniel Hunter
PwC's analysis of today’s (Friday) national corporate insolvency statistics found the number of company failures rose by almost 10% as parts of the retail and property sectors continue to suffer.
This increase on the first three months of the year- when companies tend to struggle after the Christmas period- is unusual, PwC says.
5103 companies entered insolvency in the first quarter of 2013. This is an increase of 9.5% on the first quarter of 2013 when 4616 businesses collapsed.
622 companies went into administration this quarter compared to 557 in Q1 2013.
There were 160 Company Voluntary Arrangements (CVAs) rose in Q2 2013 compared to 142 in the first three months of 2013.
However 192 companies went into receivership compared to 236 in the first quarter of the year.
In response to today's national corporate insolvency statistics, Mike Jervis, business recovery partner at PwC, said: "This increase is in corporate failures is surprising in light of the recent GDP figures. It’s unusual to see insolvencies rise from Q1 to Q2. The first quarter has historically been the peak for insolvencies. Drilling down into the numbers, this is being spurred by increases in the retail and property sectors.
"After the shocks of Q1 when household names disappeared, it shows that we are not out of the woods yet- especially on the high street and in the real estate sector.”
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