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Rise in number of failed firms

Feb 28 2011 15:10 Sapa

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Johannesburg - More companies closed down in January 2011 compared to the same month last year, Statistics SA said on Tuesday.

"A year-on-year increase of 24.8% (from 206 to 257) was recorded for January 2011 compared with January 2010," Stats SA said.

Over the same period, close corporation liquidations increased by 30%, from 110 to 143 and company liquidations increased by 18.8%, from 96 to 114.

Statistics SA said liquidation took place when the affairs of a company or close corporation were wound up because the liabilities exceeded assets, and the matter was resolved either voluntarily or by a court order.

The agency found that the total number of insolvencies for 2010 decreased by 33% - from 5 724 to 3 835, compared with 2009.
statistics sa  |  sa economy  |  businesses  |  liquidations
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