The transport, hotel and restaurant sectors are still struggling, despite an overall fall in insolvency figures, statistics from the Insolvency Service reveal.
The number of transport, storage and communication businesses entering administration jumped by 50% quarter on quarter, up from 16 appointments in Q3 2012, to 24 appointments in Q4 2012. The hotel and restaurant sector also revealed signs of stress, with 31 operators entering administration in Q4 2012. This is an increase of 29% on the 24 appointments recorded in Q3 2012.
Jane Moriarty, restructuring partner at KPMG, commented: “While it’s good news that the overall number of businesses entering insolvency has dropped, the figures reveal that certain sectors are still struggling and remain under unrelenting pressure.
“The hotel and restaurant sector is being hit particularly hard by depressed consumer spending as people tighten their belts and chose to stay home rather than splurging on a meal or weekend away. Sadly this trend is likely to continue for the next quarter, as people concentrate on paying off their debt after spending at Christmas.
“Transport operators are also being hit by a knock on effect from troubles in other sectors. While high profile administrations dominate the headlines, it's easy to forget their suppliers, such as haulage companies, are always badly affected by the demise of retailers like HMV and Blockbusters.”
- There were 1,007 corporate insolvencies in the fourth quarter of 2012 comprising 276 receiverships, 580 administrations and 151 company voluntary arrangements. In total these represented a decrease of 14.2% on the same period a year ago.
- The overall retail sector (including automotive and wholesale) saw a decrease of 7% in administration appointments (70 for Q4 2012 to 75 for Q3 2012). Year on year comparatives recorded a decrease of 11% (79 for Q4 2011).
- The real estate sector saw a drop of 20% in administration appointments (123 for Q4 2012 compared with 153 for Q3 2012). In comparison to the same period last year, this was a 43% fall in administration appointments (216 for Q4 2011).
- The transport sector saw an increase of 50% in administration appointments (24 for Q4 2012 compared with 16 for Q3 2012). The sector witnessed a decrease in appointments of 23% compared with the same period the year before (31 for Q4 2011).
- The manufacturing sector saw an increase of 10% in administration appointments (91 for Q4 2012 to 83 for Q3 2012) and appointments also increased by 20% compared with the same period last year (76 for Q4 2011).
- The hotel sector saw an increase of 29% in administration appointments (31 for Q4 2012 compared with 24 for Q3 2012). The sector recorded a 50% drop in appointments compared with the same period for last year (62 for Q4 2011).
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