Insolvency market challenging despite retail failures – Begbies

BEGBIES Traynor, the national corporate restructuring group, says the insolvency market remains “challenging” despite the recent cluster of high profile retail failures.

Executive chairman Ric Traynor says the headline grabbing administrations of HMV, Jessops, Republic and Comet are masking the true picture of economic landscape.

In a third quarter trading update he said: “The group has continued to report good, sustainable levels of profitability whilst maintaining a sound financial position.

“Overall the insolvency market remains challenging, despite the impression given by a number of high profile retail administrations since Christmas.”

Citing Insolvency Service figures the firm said 2012 had seen a 5.8% fall in the number of corporate insolvencies in England and Wales to 20,580.

Begbies Traynor said its profits in the three months to the end of January were in line with expectations, while net debt is also in line with the board’s targets and “comfortably within” its banking facilities.