Leisure and hotels sector sees biggest fall in insolvencies
The leisure and hotels sector saw a larger drop in the rate of business insolvencies in August 2012 than any other sector.
That's the finding from Experian's Business Insolvency Index, which showed that the insolvency rate in the sector fell from 0.15% in August 2011 to 0.12% in August this year.
Overall, insolvencies in August 2012 stood at around the same rate as July 2012. There were 1,723 business failures for the month in total. Scottish firms did well, with an insolvency rate of 0.06% in August 2012 overall. The picture in Yorkshire was also relatively good compared with the rest of the UK, with a fall in insolvencies among all businesses from 0.1% in August last year to 0.08% in August 2012.
Max Firth, managing director, Experian Business Information Services, UK&I, said: "Since March we've seen insolvency rates flatten out, which is a positive and welcome trend. In addition, we've seen real pockets of improvement, such as in Scotland and Yorkshire, which have been sustained over a number of months now.
"But firms cannot afford to be complacent. They need to continue sensible financial practices such as risk planning and monitoring their financial health and those of their customers and suppliers."
By Neil Gerrard
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