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Season of busts in Britain

business Updated: Apr 06, 2009 23:20 IST
Vijay Dutt
Vijay Dutt
Hindustan Times
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The injection of $1.1 trillion into economy to counter recession agreed at the G-20 London Summit would be too late for people and firms going bust. Almost 340 people and 95 firms are going bankrupt every day in Britain.

Insolvency and restructuring group, Begbies Traynor, estimates that more than 35,000 firms could go under this year. The figure would be 18 per cent higher than the previous peak in the 1990s crash, reported the Sunday Times.

Nick Hood of the group said he would not be surprised if the number rose to 40,000 by the end of the year.

The forecast is that as many as 1,25,000 people will go bust this year — well above the 1,07,000 peak in 2006 — equivalent to 342 people a day. Richard Goodwin, editor of the London Gazette, the newspaper of record that prints personal and corporate bankruptcy notices, said pagination had reached a record last month — averaging 96 pages a day — up from 85 last year and 78 in 2007.

This bad tiding is coincided with a report released two days ago by the accountancy firm Ernst & Young, which showed companies in Britain issued 117 profit warnings in the first quarter with worse to come.