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Number of insolvent UK firms rises at fastest pace since 2009

Staff Writer |
The number of companies in England and Wales falling into financial distress is rising at the fastest pace since 2009.

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The Insolvency Service, a government agency, said there was a 19.3 percent annual rise in business insolvencies between July and September, the sharpest increase since the second quarter of 2009 -- during the financial crisis.

Tuesday's figures showed 4,308 businesses registered as insolvent in the third quarter, the most since early 2014, based on seasonally adjusted data that exclude "bulk" closures of personal service companies, caused by tax changes last year.

This year's rise in insolvencies has been driven by an increase in creditors' voluntary liquidations -- when shareholders choose to close down their business due to its inability to fully repay creditors.

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