Insolvency trade body R3 hails figures on corporate rescue and recovery

R3eastern region chairman Frank Brumby.

R3eastern region chairman Frank Brumby. - Credit: Archant

Nearly two out of every five insolvent companies in eastern and central England have been salvaged with the the help of insolvency professionals, accoring to a new report.

The study, by R3, the trade body for specialist insolvency practitioners, shows that 39% per cent of companies in the East of England and the Midlands which entered a formal insolvency process in the year 2013-14 were able to continue trading.

This represents about 1,400 companies being rescued and around 35,800 jobs being saved, says the report, which is entitled Why Insolvency Matters.

Frank Brumby. R3’s chairman in the eastern region, said: “The insolvency profession makes a huge impact on the fortunes of businesses, individuals and creditors throughout the East of England and beyond. We witness first-hand the human cost of business failure and do everything in our power to rescue both businesses and jobs.

“Although we are delighted to see the huge difference we have made in the last year, we know that the profession, the government and individuals still have work to do,” he added.

“While R3 will continue to make every effort to protect businesses and jobs, it is crucial to note that the sooner an insolvency practitioner’s advice is sought, the more chance there is of rescue and recovery.”

There are approximately 55 licensed R3 insolvency practitioners in the East of England out of approximately 1,750 in the UK.