Johannesburg - The total number of liquidations in December decreased by 39.9% year on year (y/y)‚ after a 51% y/y decrease in November‚ 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.
A decrease of 42.4% was recorded in the fourth quarter of last year compared with the fourth quarter of 2011. the number of liquidations in 2012 fell by 23.7% compared with 2011.
Last year‚ voluntary liquidations fell by 24.5% and compulsory liquidations decreased by 16.8% compared with 2011.
Close corporation and company liquidations decreased by 25.4% and 21.6% respectively over the same period.
The largest year-on-year decrease in total liquidations in 2012 related to businesses in the financing‚ insurance‚ real estate and business services industry‚ which recorded 357 fewer liquidations; and the wholesale and retail trade‚ catering and accommodation‚ with 287 fewer liquidations.
The number of insolvencies decreased by 13.9% in the first eleven months of last year compared with the same period in 2011.
A year-on-year decrease of 10.8% was estimated in November‚ after a y/y decrease of 12.1% in insolvencies was estimated for October.
A 13.0% decrease was estimated in the three months ended November last year compared with the three months ended November 2011. - I-Net Bridge