The total number of liquidations in October decreased by 35.3% year on year (y/y)‚ after a 28.5% y/y decrease in September‚ Statistics SA data showed on Monday.
Liquidation figures give an account of the level of unpaid debt in SA as well as how many businesses or firms go under. The downside to company liquidations is mainly job losses.
The number of liquidations recorded for the first ten months of this year fell by 18.0% compared with the first ten months of last year.
The 35.3% y/y decrease in the number of liquidations in October was due to voluntary liquidations‚ which decreased by 88 and compulsory liquidations which decreased by 40.
Close corporation liquidations decreased by 70 and company liquidations decreased by 58 over the period.
The largest y/y decreases in October in total liquidations related to businesses in the financing‚ insurance‚ real estate and business services industry‚ which recorded 52 fewer liquidations; wholesale and retail trade‚ catering and accommodation‚ with 49 fewer liquidations; and the community‚ social and personal services‚ with 20 fewer liquidations.
The number of insolvencies decreased by 15.7% in the first nine months of this year compared with the same period last year.
A y/y decrease of 15.8% was estimated in September‚ after a y/y decrease of 14.9% in insolvencies was estimated for August.
Stats SA reported a 14.6% decrease was estimated in the third quarter of this year compared with the same period last year. - I-Net Bridge