Insolvency statistics setting records again in July

July 2012 was an unfortunate return to the record books for corporate Australia with the highest number of insolvency appointments ever recorded for the month of July. July saw 930 companies entering some form of insolvency administration (including Liquidation, Voluntary Administration and Receivership) just squeaking in over the previous July record of 921 from July 2011 (a 1% increase). On the long term outlook, it was a 9% increase over the average of the previous five Julys.

June 2012 had reported a somewhat surprising drop in insolvency numbers.  The drop was a little misleading as it was coming off a very high June 2011.  But in any case we are back to another “highest ever”.  The key statistics are:

• The number of companies entering some form of insolvency administration in the 12 months to July 2012 was 10,766. That is a 9% increase over the previous year and a 20% increase over the average of the previous 5 years.

• The number of insolvencies in July 2012 was 930 which is a 1% increase over the previous July, and a 9% increase over the average of the previous five Julys.

• Appointments initiated by company directors have increased with 500 Creditors Voluntary Liquidation appointments for the month, compared to an average of 385 in 2011, making up 53% of total appointments for the month.

We have seen an increase in enquiries and we seem to be back to trend in that insolvency numbers are bouncing along at a high level.