Company Liquidation. Picture: ISTOCK
Company Liquidation. Picture: ISTOCK

THE total number of liquidated companies rose to 135 last month compared with 119 in December, Statistics SA data showed on Monday.

This suggests that some companies continue to battle to operate in an environment of lacklustre economic growth and weak demand.

The data are used to measure economic performance and are also an important indicator of the scope of unpaid debt in SA.

The total number of liquidations recorded in January this year compared with January last year, however, fell by 0.7%. Voluntary liquidations decreased by four cases and compulsory liquidations increased by three.

Liquidations fell 8.4% in the three months ended January 2016 compared with the three months ended January 2015.

The estimated number of insolvencies increased 7.1% year on year in December 2015, Statistics SA said. A 12.8% decrease in insolvencies was estimated between the fourth quarter of 2014 and the fourth quarter of 2015.

Insolvencies fell 14.3% from 3,119 in 2014 to 2,674 in 2015.

The Statistics SA survey covers the total number of companies and close corporations which were liquidated and individuals and partnerships placed under final sequestration.