More SA firms hit the skids

Johannesburg - The total number of liquidations in February increased by 21.6% year-on-year (y/y) to 399 from 328, Statistics SA data showed on Monday.

In January they rose 24.8% y/y.

Stats SA said that during the period, close corporation liquidations went up by 19.8% to 200 from 167, while company liquidations rose 23.6% to 199 from 161.

The total number of liquidations recorded for the three months ended February rose by 13.2% to 1 037, from 916 compared with the three months ended February 2010.

The 13.2% increase was due to a rise in the number of compulsory liquidations, which recorded 82 more liquidations, and voluntary liquidations, which recorded 39 more liquidations during the period.

There was a y/y drop of 30.5% in insolvencies in January, from 123 to 177.

The total number of insolvencies for the three months ended January decreased by 31.3% from 1 086 to 749, compared with the same period in 2010.

Source: www.fin24.com

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