Government statistics reveal spike in level of liquidations in construction sector

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

The Insolvency Service’s statistics for the fourth quarter of 2008 reveal that 787 companies in England and Wales went into liquidation during the period – a 57% increase from the figure of 500 from the same period in 2007.

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.

Countrywide statistics showed that liquidations across the board had increased by 51% on the same period a year ago. In total, 4,607 companies went into liquidation in the fourth quarter of 2008.