FEWER companies were liquidated last month compared with the previous month and a year ago, despite difficult economic conditions such as weak demand, Statistics SA data showed on Monday.
The number of liquidated companies fell to 158 last month from 179 in May. The 158 were also fewer than the 199 recorded in June last year. Most of the liquidations were voluntary.
While compulsory liquidations fell by 60 cases in June this year compared with the same month last year, voluntary liquidations increased by 19 cases over the same period.
The largest year-on-year decreases in total liquidations in June related to businesses in the financing, insurance, real estate and business services industry, where 31 fewer liquidations were recorded, and the wholesale and retail trade, catering and accommodation industry with 18 fewer liquidations.
During the first six months of this year, the number of liquidations reflected a year-on-year decrease of 7.8%, Stats SA said. Close corporation liquidations decreased from 538 to 487 while company liquidations fell from 540 to 507.
The estimated number of insolvencies decreased by 5.7% year on year in May 2015. A 6.5% decrease was estimated between the three months ended May 2014 and the three months ended May 2015.
There was a decrease of 7.8% in insolvencies in the first five months of this year compared with the first five months of last year.
Picture: THINKSTOCK
FEWER companies were liquidated last month compared with the previous month and a year ago, despite difficult economic conditions such as weak demand, Statistics SA data showed on Monday.
The number of liquidated companies fell to 158 last month from 179 in May. The 158 were also fewer than the 199 recorded in June last year. Most of the liquidations were voluntary.
While compulsory liquidations fell by 60 cases in June this year compared with the same month last year, voluntary liquidations increased by 19 cases over the same period.
The largest year-on-year decreases in total liquidations in June related to businesses in the financing, insurance, real estate and business services industry, where 31 fewer liquidations were recorded, and the wholesale and retail trade, catering and accommodation industry with 18 fewer liquidations.
During the first six months of this year, the number of liquidations reflected a year-on-year decrease of 7.8%, Stats SA said. Close corporation liquidations decreased from 538 to 487 while company liquidations fell from 540 to 507.
The estimated number of insolvencies decreased by 5.7% year on year in May 2015. A 6.5% decrease was estimated between the three months ended May 2014 and the three months ended May 2015.
There was a decrease of 7.8% in insolvencies in the first five months of this year compared with the first five months of last year.
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