Insolvency figures on the rise

The number of businesses forced into administration or receivership has risen sharply. Figures from PKF Accountants show that the number of administrations rose to 858 in the first quarter of 2008 - 54% higher than the previous quarter.  PKF says that this number is the second highest quarterly figure since the Enterprise Act changed the rules governing administrations in 2002. The number of receiverships, meanwhile, increased to 273 in the first quarter of 2008 - 145% higher than a year ago and the highest level since 2003. PKF believes that this is an accurate barometer of business failure.  With banks more wary of lending money and other creditors tightening their trading terms, businesses are faced with a credit squeeze while simultaneously coping with increased fuel and utility bills, the firm says.