Construction liquidations soar by 57% in just one year

The number of construction firms going into liquidation has rocketed in the past year, according to government statistics.

The Insolvency Service’s statistics for the fourth quarter of 2008 reveal that 787 construction companies in England and Wales went into liquidation during the period – a 57% increase on the same period in 2007, which saw 500 firms go into liquidation.

A total of 495 construction firms entered voluntary liquidation, a 63% rise from the 303 firms who did the same in the fourth quarter of 2007.

In the same period, 292 construction firms were compulsorily wound up – a 48% rise from the same period the year before in which 197 companies entered compulsory liquidation.

In total, there were 4607 compulsory liquidations and creditors’ voluntary liquidations in England and Wales in the fourth quarter of 2008. This was an increase of 11.9% on the previous quarter and an increase of 51.6% on the same period a year ago.