FINANCE: Liquidation Figures Show Economic Recovery
Recent Western Cape Business News
The decline in the number of liquidations for June 2011 was due to decreases in both voluntary and compulsory liquidations. During the first six months of 2011, the number of liquidations reflected a year-on-year decrease of 22,9%. Company liquidations decreased by 32,0% while close corporation liquidations decreased by 14,3% during this period.
According to the latest Stats SA release, businesses in the financing, insurance, real estate and business services industry had the largest decrease of 80.5%, followed by the wholesale and retail trade, catering and accommodation industry .
The figure, combined with a 37.5% drop in year-on-year May 2011 insolvency statistics (relating to personal insolvencies), is good news and incredibly encouraging for individuals. Adam Harris, a Director in the Insolvency and Business Restructuring Unit of corporate law firm Bowman Gilfillan, said in Cape Town yesterday (Monday).
He was commenting on the most recent Statistics SA release of the liquidations and insolvencies numbers.
“The Stats SA trend-lines for both liquidations and insolvencies are on a clear downward trend, even given the downward spike which we saw in last month’s statistics. That’s encouraging and must go to show that we are inching our way out of the economic crisis.”
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