Huge jump in business failures

COMPANY  insolvencies leapt 56% in the first three months of the year as recession took a heavy toll on the economy.

Corporate failures rose to 4,941 in the first quarter of the year – up 7.1% on the last three months of 2008.

Individual insolvencies also rose by 19% to 29,774 – the highest number in nearly 50 years. at 10,713.

Within the corporate sector, construction companies badly hit, with collapses rising by 50%. Manufacturers saw a 23% hit.

The most badly affected sector was hotels, where insolvencies rocketed 550% – 11 hotels went into administration this quarter compared with 2 in the previous three months.