Insolvency numbers dip in June release as big insolvency firms suffer a downturn
Corporate insolvency statistics for June 2013 have just been published. The monthly figure of 900 insolvency appointments for June 2013 signals an end to the run of record numbers in the previous two months. Whilst it was a 12% increase over the previous June and a 6% increase over the average of the previous 5 Junes, it is 12% off the record of 1,027 in June 2011.
June was a bad month for Victoria with 267 insolvencies. making up 30% of the national total. Victoria has comprised an average of 26% of the national total over the last 5 years.
Insolvency numbers are a moving feast. There had been an expectation that 2012 would see a peak in numbers – you might recall that our research has shown that insolvency numbers tend to peak four years after a financial crisis. Numbers were high in 2012 and showed signs of dipping in 2013. Then we saw numbers return to new highs with two of the last three months being records.
So where to now for insolvency numbers …. err dunno! What I do know is that scuttlebutt suggests that the workload in the larger insolvency firms has dropped off. There have been a number of Partner departures and we see some firms announcing the formation of Turnaround Divisions or Profit Improvement Divisions or just Consulting Divisions – all signs that traditional insolvency work is on the wane.