Corporate insolvencies continue to rise

Businesses are being warned to be on their guard following news that national figures for corporate insolvencies are continuing to rise and are higher than this time last year.

The hardest hit industries are construction, retail and hospitality and leisure, with unemployment figures significantly higher in these professions reports Moore Blatch solicitors.

The most recent retail casualty is Blacks Leisure, which also owns Millets and Blacks – the outdoor clothing and equipment stores. Both stores have numerous branches in Hampshire and Dorset with Millets’ stores based in Southampton, Fareham, Winchester, Poole and Lymington. Blacks Leisure has reported significant losses this year, with close to double the loss made last year.

Moore Blatch corporate insolvency expert, Lisa Saxby comments: “This is incredibly sad for the high street and for the employees involved who will be seriously affected by this news.

“Retail has been one of the worst affected industries in relation to employment losses, with September reporting 23,000 fewer jobs than the same period last year.”

Leisure chain Luminar Group Holdings, which owns nightclubs Oceana in Southampton and Ignite and Lava in Bournemouth has also appointed administrators. The group owns a total of seventy six nightclubs throughout the country and it’s hoped that a purchaser will be found.

Lisa concludes: “National trends can have considerable local and regional effect and research shows that there are still many more businesses struggling to operate in the current market.

“We would always recommend getting advice early if companies find themselves experiencing a downturn; businesses will have more of a chance of continuing to operate and retaining supplier relationships whilst ensuring their employees retain jobs, which is a good outcome for everyone.”