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Liquidations hit UK workers

Published on 25 Nov 2009 under category: legal

Companies going into liquidation have been a major cause of job losses during the recession, according to a new study.

Research by CreditPal has found that firms going out of business, which could involve the use of insolvency solicitors, accounts for 29 per cent of the unemployment rate rise.

The number of new people without jobs in England and Wales has hit 590,000, with 164,000 of these becoming unemployed in the last year.

Chris Poll, chief executive of Future Route, which created CreditPal, said that company liquidations have had a major impact on the UK.

He commented: "In a recession, SMEs (small and medium-sized enterprises) need to pay close attention to monthly financial management information, however this is not always easy for owners and managers who are not trained in accounting."

According to CreditPal, around 15,000 firms went into liquidation in the last year.

This figure includes high-profile retailers such as Woolworths.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.