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Construction sees highest number of liquidations

Construction liquidations have fallen but are still higher than in any other sector, according to new Involvency Service statistics.

The latest figures for Q3 2013 showed there were a total of 2,819 liquidations in the construction industry.

This comprised 774 compulsory liquidations, down 7.1 per cent compared with Q2 (833), and 2,045 creditors’ voluntary liquidations, marking a 4.6 per cent fall on the previous quarter (2,144).

Overall, total liquidations in the construction sector were down 5.3 per cent compared with Q2 2013 (2,977).

The second highest number of liquidations was seen in the wholesale and retail trade sector, with 2,160 – 31 per cent lower than liquidations for the construction sector.

Wholesale and retail trade comprised 342 compulsory liquidations and 1,818 creditors’ voluntary liquidations to Q3 2013.

Sector breakdown for compulsory liquidations is currently not available for Q4 2013. Across the UK, total liquidations were down 7.4 per cent in Q4 2013 on the previous quarter and 7.1 per cent on Q4 2012.

The statistics follow a number of recent administrations in the construction sector, including London interior fit out specialist Cameron Black, which appointed BDO as administrators last month.

Northern Irish construction company Mivan also went into administration this January but was bought by Newry-based fit-out contractor MJM Group last Friday.

Insolvency Service deputy chief executive, Graham Horne said: “The statistics show that both company and personal insolvencies are down in 2013. 

“There were 14,982 company liquidations, a decrease of 7.3 per cent compared with 2012, and 101,049 personal insolvencies, a reduction of 7.9 per cent compared with last year.

“In the final quarter of 2013 there were 7 per cent fewer company liquidations and 4.6 per cent fewer personal insolvencies.

“No one wants to see people and business getting into trouble and we are working to improve the insolvency regime to make sure it supports people and business in trouble while protecting creditors.”      

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