Close
corporations
hardest hit
STATISTICS SOUTH Africa has released alarming figures which show a huge increase in the number
of business failures. The total number of companies and close corporation
which went into liquidation between January and November last year increased by 12,3% compared with the same period in 1997.
Close corporations were hardest hit, showing an increase in closure of 12,7% while the number of companies which closed stands at 11,8%. The worst month was November with 476 companies going into liquidation. The highest number of liquidations happened in close corporations in the construction industry, followed by the wholesale, retail, accommodation trade services and in the financial services sector.
November alone saw 12 close corporation construction companies close. Statistics South Africa found there was a 39.4% increase in the number of voluntary closures - with voluntary
liquidation for companies growing by 43,4% and those for close corporations increasing by 34,9% - and a drop of 1.6% in total compulsory liquidations.
By Anna Cox
