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UK insolvency sector 'saved over 6,000 businesses'

Published on 21 Apr 2010 under category: legal

Insolvency practitioners (IPs) in the UK salvaged around 5,851 companies last year, according to new figures.

ComRes estimated that around two million jobs were saved because of the intervention of practitioners, reports the insolvency industry body R3.

According to R3's incoming president Steven Law, IPs do not simply step in to wind down failing businesses.

They should no longer be considered as 'corporate undertakers', Mr Law claims.

He said: "If the IP can get in early enough, often the business, or parts of the business, can be saved by insolvency procedures such as administration or company voluntary arrangements.

"Two million jobs equates to around seven per cent of the working population. Also an overlooked part of our role is helping businesses and individuals avoid insolvency in the first place."

R3 also cited research from the cebr which calculated that the insolvency industry added around £562 million to the UK's gross domestic product.