Written by: Keith Tully
Reviewed: Friday 24th May, 2013
Getting expert advice off an insolvency practitioner could save your business from closing its doors, according to a latest study.
Findings by ComRes on behalf of R3, the trade body for Insolvency Professionals, revealed that the UK insolvency industry saved around 750,000 jobs last year and stopped over 6,000 companies going into liquidation.
Lee Manning, former R3 President, said: “The insolvency profession may seem at first glance an unlikely saviour of businesses and jobs, but a struggling business may well survive in some form.”
The research found that in 45% of cases, the business avoided full closure after being advised by insolvency practitioners (IPs) and of those in formal insolvency procedures, over 25% were able to continue in some shape or form.
It shows that by engaging with an IP, it does not necessarily mean the end of your business.
Mr Manning added: “The findings also highlight practitioner work involves advising a business pre-insolvency or restructuring, often overlooked and by necessity under the radar. Our insolvency regime is shown to be flexible with a variety of options to suit any distress situation. I am heartened by the high numbers of jobs saved and the contribution that is making to the UK economy.
“In the meantime, these findings show that, though minor changes could be beneficial, the UK’s insolvency regime is broadly working well. This is backed up by favourable comparisons to other international insolvency regimes.”
The total number of business insolvency cases in the UK stood at 22,590 in 2012; a reduction of 11%.
Around 430 IPs were interviewed as part of the study, which took place between December 2012 and January 2013. R3 is otherwise known as the Association of Business Recovery Professionals.
If your business is struggling, it is imperative to take action now and get in touch with Real Business Rescue today. We have a team of award-winning IPs that can provide excellent support and advice.
Check out our vast array of insolvency services and let’s get your company’s affairs in order.