/ 5 August 1998

Liquidations rise by 60%

SARAH BULLEN, Johannesburg | Tuesday, 3.00pm.

THE total numbers of liquidations in the second quarter of 1998 rose a staggering 59,3% to 1034, from 649 liquidations in the previous quarters, the latest figures from the Central Statistical Services released on Tuesday indicate.

The increase reflects a 21,6% increase compared with liquidations in the second quarter of 1997. CSS said the 59,3% increase can mainly be attributed to a substantial increase of 70,3% in the total number of compulsory liquidations, which contributes 56,0% to total liquidations.

Compulsory liquidations of companies increased by 32,0%, while those of close corporations increased by 101,6%. The total number of insolvencies for the three months to May 1998, rose 36,2% to 880, from 646 in the first quarter, and an increase of 20,4% compared with the same period of the previous year.