The number of UK company insolvencies fell in the second quarter if the year, but accounting firm PricewaterhouseCoopers (PwC) warned that there was a high risk of increased business failures in the retail, hospitality and leisure sectors over the next 12 months.
PwC said that 3,531 UK businesses became insolvent in the second quarter of the year, a 16% decline compared to the previous three months, as low interest rates and lenders “anxious to avoid realising losses” allowed embattled firms to keep trading.
However, the number of corporate insolvencies increased by 2% during the quarter compared to the same period in 2010.
Mike Jervis, partner at PwC’s recovery team, said: “We are by no means out of the woods yet. There is a high risk of increased insolvencies in the retail, hospitality and leisure sectors, over the next 12 months.”
He said that the quarterly rent cheque, which was due on 24 June, may have impacted several companies in the retail sector, with 41 retailers with assets of more than £1m entering insolvency in the quarter.
