Corporate insolvencies reach 'highest ever' figures in 2011
2011 is well on the way to setting a record for corporate insolvencies, according to Dissolve - a business specialising in company liquidations.
"This is more bad news about the state of corporate Australia," said Dissolve chief executive officer Cliff Sanderson, commenting on the most recent release of insolvency statistics from the Australian Securities and Investments Commission.
Statistics have been recorded in the current format since 1999, and 2011 has seen a number of "highest ever" figures. Over 900 companies (921) entered insolvency administration in the month of July 2011. The figure is down from June's 1,027 insolvencies, but still takes out the title of the highest July ever.
In the year to July 2011, there were 1,355 appointments by secured creditors - the major contributor being banks appointing receivers.
"Interestingly, the number of voluntary administrations, which have the stated purpose of saving a business, is the lowest on a 12 month basis," Sanderson said.
"This suggests that we are seeing a lot of companies that have previously ceased to trade being given their last rights," he added. The majority of those companies originally struck trouble in global financial crisis part one, Sanderson said.
"We are yet to see the full effect of recent troubles in the retail sector. So we expect that the numbers will continue to be poor through to the end of 2011," he said.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
