Business insolvency doesn’t have to be the death knell for companies, as more than two in five continue trading in some way thanks to the efforts of corporate recovery professionals.
Figures from insolvency trade body R3 show that, in 2013-14, 41% of formal business insolvency ended with the company continuing to trade in some way.
That accounts for roughly 6,700 companies that were rescued, saving nearly a quarter of a million jobs in the process.
R3 president Phillip Sykes said: “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.”
There is a further benefit to firms for whom administration advice helps them to avoid entering into formal corporate insolvency proceedings.
During the same period, when these companies are included in the overall total for corporate recovery after some form of contact with the insolvency industry, 10,400 businesses were able to continue trading.
Including the 230,000 jobs saved through formal insolvency proceedings, this advice took the total to around 540,000 people who were able to stay in employment.