Corporate Insolvencies still low in June 2014
The corporate insolvency statistics for June have shown yet another decrease in 2014 when compared to the corresponding month in 2013. The number of appointments for the month for June 2014 was 811. This was a 10% decrease from June 2013′s total of 900, and an 8% decrease from the average previous 5 Junes.
Victoria showed the largest decrease posting 211 insolvencies in June 2014. This was a 21% decrease from June 2013, and a 10% decrease from the average of the previous 5 Junes.
Insolvency appointments initiated by secured creditors were down significantly in June. The month saw 35 appointments of Controllers, which is down 40% when compared to June 2013, and 45 Receiver Manager appointments which is down 32% on the previous June.
June 2014 marks the 12th month that ASIC have published corporate insolvency statistics broken down by industry. Of the 9,822 insolvencies from July 2013 to June 2014 the largest industry contribution was from the “Other (business and personal) services” category with 3,100 appointments being 32% of the total. Next was the Construction industry with 1,781 (18%) and third was Accommodation and Food Services with 816 (8%).
Whilst June 2014 was the equal highest month this calendar year with 811 corporate insolvencies, 2014’s number continue to be some way off the corresponding month in 2013. If this trend continues 2014 will be the best year for corporate Australia since the GFC.