Record July Revealed in new Corporate Insolvency Stats Release
ASIC has just released the corporate insolvency statistics for July and August 2013. Notably July 2013 was a record high for the month of July with 1,005 insolvencies, beating the previous record of 930 in July 2012. This is the fourth record month this year. This release was also the debut of ASIC’s new industry level reporting, with initial results showing few surprises.
The 1,005 appointments in July 2013 was an 8% increase over the previous year’s July total of 930, and a 13% increase over the previous five dry Julys.
The 986 appointments in August 2013 was a 1% decrease from August 2012’s total of 996, but was still a 12% increase over the average of the previous five Augusts.
ASIC now reports corporate insolvency statistics by industry. This latest release provided industry level statistics for July and August 2013. The largest categories for August 2013 were:
- Other services – (yes, that’s not very informative) 310 appointments (31% of all wind ups);
- Construction – 166 appointments (17% of total);
- Retail Trade – 80 (8%);
- Accommodation and food services – 77 (8%);
- Unknown – 59 (6%).
It is handy to have this information from ASIC. I’d suggest that it is exactly as expected. At Dissolve we receive a lot of enquiries and we’ve previously stated that out Top 3 are Tradies (so Construction), Small Retail and small restaurants – we just didn’t know if we were a valid reflection of the whole insolvency spectrum. Turns out we are.
I suspect that some in the industry might think manufacturing would sit higher but it didn’t make the top five. It sits at seventh with 39 appointments making up 4% of total wind ups. But it is as I would have expected. The hallmark of Construction, Retail and Food is that there are lots of little ones whereas Manufacturing insolvencies are probably fewer in number but larger in value due to the nature of the industry.
The unknown category should reduce in size as insolvency practitioners get used to reporting the appointee’s industry.