60 Firms Will Collapse Every Day This Year
Byline: Becky Barrow Business Correspondent
AS many as 60 firms will collapse every day this year due to the crippling impact of the recession and the fragile recovery, research reveals today. But the silver lining for bosses is that workers are willing to take a pay cut and a more junior position to secure a job because they are so concerned about their bleak employment prospects.
The number of 'business failures' will remain around the current level for the following two years.
This means more than 60,000 businesses will disappear between 2010 and 2012, according to the research, from the accountants and business advisers BDO.
Many businesses blame their failure on the fact that they cannot get the help from their bank that they need, such as a loan or an overdraft.
It comes as a separate study reveals jobseekers are resorting to desperate measures. A survey, from the website Gumtree.com, found more than 40 per cent are 'willing to take a pay cut' to secure a job.
It also found 39 per cent are 'prepared to take on a more junior role' in order to find work during these tough times.
With help not forthcoming from the banks, bosses say they have to beg for money from friends and family, remortgage their homes or even pawn their possessions.
Business failures in the UK peaked in 2009 at 26,196, but BDO predicts the figure will hit 21,579 this year, 20,149 in 2011 and 19,292 in 2012.
By comparison, there were just 16,431 failed businesses in 2007, the year that the credit crunch began but before the chaos that it triggered had really kicked in. …