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According to research by business advisory firm Deloitte, the total number of
companies falling into administration in 2009 saw a marginal drop of 2% from
3,245 in 2008 down to 3,188.
The last quarter of of the year saw a drop of 18% on the previous quarter, with
a total of 599 companies falling into administration compared with 733 in Q309.
Quarter on quarter there was a fall of 41% with 1008 companies falling into
administration in Q408.
Lee Manning, reorganisation services partner at Deloitte commented: "We saw a
sharp rise in the number of administrations at the end of 2008 and the beginning
of 2009, which reflected the peak of the recession.
"As the year progressed we saw lenders become more versatile, increasingly
adopting solutions such as debt for equity swaps and covenant resets with
companies aggressively attacking costs and improving cash management, including
undertaking CVAs".
Traditionally in the UK, one of the first sectors to be hit when a recession
arises is the property and construction industry.
In 2008 this sector bore the brunt of administrations, with 716 property and
construction companies falling into administration.
This figure fell marginally by 5% last year to 683.
Whilst this reduction is not unexpected, as many of the weaker companies would
have collapsed at an early stage of the downturn, property and construction
continues to dominate the total percentage of administrations, accounting for
21% of the total figure.
Source:
RedAlert
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