Responding to the Insolvency Service statistics on personal insolvencies, released this morning, Chris Ratten, Head of Recovery at RSM Tenon said “On the face of it, the decline in corporate insolvencies in this quarter sounds like great news but businesses are still facing on-going problems which are being masked by the current low interest rates. Just in the last few weeks some high profile companies such as Manganese Bronze and Comet have shown that the market is tough and the threat of an unprecedented ‘triple dip recession’ is just round the corner”.
Chris continued “Many businesses are only just surviving, teetering on the edge, just covering the interest on their debts and their future is dependent on their creditors’ forbearance. If these ‘zombie businesses’ were hit with unexpected costs; reduced orders, bad debts or increases in working capital this could actually push them over the edge - meaning many are walking a tight rope and in a very precarious position. So what does the future hold? The reality is that there are c200,000 at high risk of insolvency at the moment despite insolvency levels being on a downward curve and expected to reach approximately 21,000 by the end of this year. However, if current insolvencies are anything to go by, those in retail, automotive, transport and manufacturers of luxury items will have a rocky road in 2013 which could have a ripple effect on their suppliers”.
For more information or to arrange an interview with Mark Sands, please contact Phillip Ward, Senior Marketing and PR Manager at RSM Tenon on 0161 827 8431 or e-mail firstname.lastname@example.org
Notes to Editors
Official Insolvency Service statistics were released on Friday 2nd November at 9.30am.
- An insolvent individual can choose to be declared bankrupt, take out a Debt Relief Order or enter into an Individual Voluntary Arrangement (IVA). In Scotland, the terms of different as the legislation is not the same – a Trust Deed is an IVA and Sequestration is a bankruptcy.
- Debt Relief Orders are only available for people with debts of less than £15,000, who have minimal assets and spare income.
Recovery service line in RSM Tenon
The Recovery service line of RSM Tenon is the leading trustee in personal bankruptcy and the second largest corporate appointment taker in the UK. Specialising in turnaround, recovery, restructuring and insolvency in both the corporate and personal sectors, the Recovery service line of RSM Tenon is led by 40 partners and supported by over 400 staff operating from a network of over 30 offices across the UK.
About RSM Tenon
RSM Tenon is the 7th largest accountancy and business advisory firm in the UK, and has been recognised as the National Firm of the Year by this year’s British Accountancy Awards 2011. The company employs more than 2,700 people across over 35 offices. RSM Tenon Group is an independent member of RSM International, the 7th largest network of independent accounting and consulting firms worldwide with more than 700 offices across more than 90 countries.
Visit the RSM Tenon website - www.rsmtenon.com - or to understand more about RSM International – www.rsmi.com.