Insolvency Profession Helps Rescue 2-in-5 Insolvent Businesses and 230,000 Jobs

Midlands insolvency firm Poppleton & Appleby has welcomed a report which highlights the value of the insolvency profession to the UK economy.

As formal insolvencies continue to fall following the recession, R3 the trade body for insolvency professionals has released a report outlining the importance of the profession and how its many strands contribute to the UK economy.

The research found that between 2013 and 2014, R3 members helped around 6,700 businesses nationwide – 41 per cent of informal insolvencies – continue trading after entering insolvency, helping to save around 230,000 jobs.

Figures are similar in the Midlands where 2,522 cases were handled by the insolvency profession with around 38 per cent rescued after obtaining advice.

Andrew Turpin of Poppleton & Appleby, which has offices in Birmingham and Coventry, said:

“There is much more to the insolvency profession than advising on formal procedures and we are pleased to see R3’s report highlighting key areas in which the profession has had a positive effect on the UK economy.

“Insolvency is not inevitable and where possible we work with businesses to explore viable options for recovery. The role of the insolvency practitioner can be vital in helping to preserve and protect businesses as well as secure jobs.

“We continue to advise dozens of businesses outside formal processes and have strong insights into the impact of problem debt – and, importantly, how it can be tackled.

“We work closely with insolvent businesses and their creditors in liquidations, administrations and company voluntary arrangements and have a strong record of maximising returns to creditors.

“Throughout the recession there was a sharp rise in insolvencies but as confidence has returned to the market figures have started to decline.

“However, the next five years likely bring further changes to the insolvency landscape. We have already started to see rising household debts and with inflation and interest rates expected to rise, the role of the insolvency sector and the scope of support available is likely to become more prevalent.”