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Business weathering even more liquidations and insolvencies

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The total number of company liquidations grew 13.5% in August, according to Stats SA

Business liquidations and insolvencies continue to rise, according to Stats SA data released on Monday, underscoring an economy that is struggling to grow and facing business confidence at record lows.

The estimated number of insolvencies for July 2019 grew 79.7% as compared with July 2018. In the three months ended July, estimated insolvencies grew by 35.9%.easonally adjusted insolvencies increased by 32.9% in July 2019 compared with June 2019. This followed month-on-month changes of 14.3% in June 2019 and 21.4% in May 2019.

This was followed by liquidations of firms not classified into a sector, with 347 liquidations, and liquidations in the trade catering and accommodation sector of 322. The majority, about 88%, were voluntary liquidations.

 

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