In fact, the number of companies entering liquidation in 2009 – 2010 is set to be the highest since 1992.

Nick Hancock, Corporate Recovery Partner at UHY Hacker Young, said:

“Although the UK economy crawled out of recession late last year, there is always a lag between a return to growth and the fall in company liquidations. In fact, liquidations usually peak as the economy emerges from recession.”

According to UHY Hacker Young, 2008 – 2009 saw 23,500 companies enter into liquidation and this figure is expected to increase to over 25,600 for 2009 – 2010, a rise of 9%. This will be the largest number of company failures since 1991/92, when the UK started to emerge from the last major recession. In 1991/92 a total of 27,300 businesses were put into liquidation.

Better than insolvency?

“Many companies are choosing to throw in the towel and cease trading early rather than hanging on until the bitter end and waiting until they are insolvent.” said Hancock.

There’s something to be said for being the instrument of your own demise, isn’t there?