Tuesday 21st January 2020
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Administrations rise after upturn in building & property sector failures

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A surge in building and construction business failures was partly behind a 35 per cent increase in the number of companies going into administration in the third quarter of the year, according to KPMG.

A total of 417 companies went into administration between July and September, up from 310 in the previous quarter and 322 in the period last year. High profile administrations included Late Rooms and Super Break, Ferguson Marine Engineering and Eversmart Energy although the number of retailers going into administration actually fell from 26 in the second quarter to 18 in the third.

The number of building and construction administrations rose from 49 in the second quarter to 76 in the third and property insolvencies rose from 18 to 33 over the quarter. Pubs, restaurants and clubs administrations rose from 14 to 26.

Will Wright, restructuring partner with KPMG in the East of England, said: “… the more marked increase in administrations seen last quarter may herald the start of a new wave of activity. This is perhaps unsurprising, given the challenges presented by fragile consumer confidence, rising overheads from fluctuations in exchange rates, increasing employment costs and general political uncertainty. The good news is that companies across all industries are now proactively addressing long-term issues and attempting to place themselves on a more sure financial footing, ahead of any further macro-economic challenges that are coming down the line.”