2010′s first nine months have seen the number of total administrations dramatically drop by 36% compared with the previous year, according to a report by Deloitte. Their research shows that quarter on quarter administrations are falling to levels not seen since 2006, the last full year before the credit crunch hit.
Quarter 3 of this year saw 476 administrations, down 36% from 733 in 2009, and down 8% on quarter 2 in 2010 (558). Neil Matthews, reorganisation services director at Deloitte in Newcastle, said that “”for the first time since the financial crisis began, weâ€™re beginning to see a consistent drop in the numbers of companies hitting the wall“”.
The report shows that the drop in administration figures can be seen across the industry sectors, with the retail sector observing the biggest positive decline with its administrations down by 50% on the counterpart report from 2009. Matthews concluded by saying that “”this can only be a good thing.””
At Muckle LLP, our strong and growing Recovery, Restructuring and Insolvency Team has a wealth of experience in matters which range from pre-appointment advice, security reviews and corporate restructuring; through acting for administrative receivers, administrators, liquidators, nominees and supervisors in relation to formal insolvency procedures; to dealing with matters such as wrongful trading, preference and undervalue transactions, director and creditor issues.