East sees insolvencies rise

Posted 26/06/2012

An increasing number of companies based in East Anglia and the surrounding area are going out of business, according to new research.Experian’s Business Insolvency Index showed there was a rise in company failures in May 2012 compared to May 2011, with a 32 per cent hike in the number of firms in the east failing.According to the data from the organisation, 189 firms went out of business over the course of the month.Max Firth, UK managing director for Experian’s Business Information Services division, explained the highest levels of insolvency are seen in companies with between 10 and 100 employees.”By the time a firm grows to six to ten employees, the flexibility it benefited from as a micro business begins to disappear,” he noted.Previous research by Experian highlighted the fact many companies in the UK are at risk of missing out on the ecommerce boom unless they focus on this area in the coming months.Posted by Luke Hibbert