Monday 7th April 2008
The number of insolvencies rose to 4,798 during the first quarter, as the credit crunch begun to impact on UK businesses.
This figure is 374 more than in the preceding period and an increase of 124 on the final quarter of 2007.
Furthermore, the increase of 8.5 per cent represents the first rise in 12 months, suggesting that the squeeze on credit in the financial markets is beginning to impact on the wider economy.
Tony Pullen, managing director of Experian's business information department, said: "Company failure has far-reaching consequences for the broader economy and people's livelihoods. Failed companies expose their suppliers to bad debts, which could push some creditors into insolvency themselves.
"It's never been more important for companies to ensure they take every step they can to protect themselves, including checking to see if their customers are taking longer to pay their invoices - not just to themselves but to their other suppliers."
The sectors experiencing the largest rise in failed businesses were agriculture and financial services with increases of 109.1 per cent and 36 per cent respectively.
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UK economy
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