The number of company collapses in Australia continues to remain high according to the latest external Administration Appointments Statistics from the Australian Securities and Investments Commission (ASIC).
Taylor Woodings, a national independent accounting firm specialising in restructuring and corporate recovery, found in ASIC’s data a 14 per cent increase in company collapses in March on the previous month, with a leap from 852 to 968.
These numbers are also up 7 per cent compared with the same time last year and continue to edge closer to the highest March figure of 1095 insolvencies, which was recorded during the Global Financial Crisis of 2009.
In their findings, Taylor Woodings foresee insolvency figures to remain high in April, as factors such as the high Australian dollar and subdued consumer sentiment creating challenging business conditions in numerous sectors such as IT.
The outlook for the second and third quarters of 2011 is also subdued, with the deterioration in trade payments and increase in insolvency appointments continuing to affect Australian businesses.