Liquidations and insolvencies increase in November


Statistics South Africa reports that 160 businesses were liquidated in November this year, up by 15 percent from the figure recorded during the same period last year.

In addition, the number of liquidations increased by 7.1 percent in the three months ended November 2016, compared to the three months ended November 2015. It is as great a sign as any that the South African economy is not performing well and that the little men are battling to survive the times.

The number of insolvencies increased by about 1,9 percent in October 2016 compared with October 2015.

In addition, a 4,4 percent increase was estimated between the three months ended October 2015 and the three months ended October 2016. There was an increase of 2,9 percent in the first ten months of 2016 compared with the first ten months of 2015.

Throughout the year, two groups of industries have been hit the worst. The total number of liquidations in the finance, insurance and real estate industry was 695 between January and November this year. StatsSA reports that 62 of those liquidations were recorded in November alone.

There have also been 428 liquidations in the trade, catering and accommodation industries during the same period. Forty seven of those were in November this year.

StatsSA also says that 316 liquidations were not classified.