About 2 in 5 insolvent businesses were saved from insolvency in 2013-2014, according to research from insolvency trade bodies, ComRes and R3.
R3 members helped to rescue 6,700 businesses from insolvency, with 10,400 businesses estimated to have been able to continue trading after receiving assistance from insolvency practitioners.
As a result of the turnaround scenarios, it is estimated that 540,000 jobs were saved 2013-2014.
Phillip Sykes, President of R3, says, “There is much more to insolvency than business or personal finance failure. As the economy continues to recover from recession, business recovery and renewal will be an important part of the economic landscape.”
“Insolvency practitioners witness first-hand the human cost of business failure and will make every effort to protect jobs where possible. The sooner insolvency practitioners’ advice is sought, the more chance there is of business and job rescue. The insolvency profession is increasingly helping businesses outside of formal insolvency procedures too.”
There are 1750 insolvency practitioners in the UK, seeing 12,000 people employed in various insolvency roles.
Insolvencies peaked in 2009 at 26,000 insolvent businesses. With recovery taking hold for many after the recession period, this figure has now dropped to 18,000 insolvent businesses in the UK.