Peter Hoskin

Disappearing companies

Disappearing companies
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Yet another set of alarming recession statistics, these from today's FT:

"One in every 56 businesses is expected to collapse this year as the recession intensifies, a leading accounting firm has warned.

BDO Stoy Hayward says the rate of business failures will increase by 59 per cent by the end of this year to 36,000 companies, up from 22,600, or one in 87, in 2008.

As the UK economy contracts at its fastest rate since the second world war, the firm’s Industry Watch report predicts that more company casualties will follow in 2010. It says 39,000 businesses, or one in 50, are likely to fail next year." What's particularly striking about this set of predictions is how, for this measure at least, they warn of an even worse position in 2010.  Recovering from this economic crisis is going take a prolonged struggle.