More companies went bust in the plastic and rubber sector last year than in 2002

More companies went bust in the plastic and rubber sector last year than in 2002

Company failures in the plastics and rubber sector increased in the last quarter, contrary to the overall trend in the UK. Figures released by Experian yesterday revealed 32 business failures in the fourth quarter of 2003, a 28% increase compared to same period in 2002.

In the UK a total of 4,159 companies failed in the final quarter, a 17.6% fall in the same comparison. Over the whole year 118 plastics and rubber businesses went to the wall, compared to 109 in 2002. The figures were compiled from notifications to Companies House of a voluntary liquidation, compulsory liquidation, administrative order, receivership or voluntary arrangement.

Phil Cotter, managing director of Experian’s Business Information division, said: “The introduction of new insolvency rules during 2003 to help make it easier for UK businesses to get out of financial trouble has been reflected in the overall decline in the number of businesses going to the wall in 2003, while the number of companies going into administration increased by a record 74.5% in the final quarter of the year.”

The new rules prevent banks from appointing a receiver; they can only appoint an administrator. It is now easier for companies to put themselves into administration and take measures to prevent corporate failure.