Less Firms Heading Into Administration According To Deloitte
The good news this year is that less firms have gone into administration during 2014 than in 2013. The bad news is that not all sectors have done so well in the recovery.
Retail has been an area that has suffered badly from the economic downturn. Large chains as well as smaller shops being wiped out of existence by a combination of Internet shopping and people hanging on to their money.
In 2014, however, the retail sector saw a 35% fall in companies entering administration in England. The sector was not alone with almost every sector seeing a fall in companies going into administration amounting to a 20% decrease overall.
The exceptions were the IT sector which actually saw an increase of 14% and perhaps ironically financial service companies seeing a rise of 2.5%.
The fall in the number of companies entering administration may be due to more effective negotiation with creditors. Often a business can be saved if there are options on the table and repayment plans put in place.
With the economy currently on a positive track, it may also be an indication that meaningful growth in the economy has returned.