Business

More collapses tipped next year

07:06 am on 30 November 2011

Many more businesses are likely to collapse next year, as banks come under increasing pressure to recover debt.

Ernst & Young insolvency practitioner Rhys Cain says the global financial crisis took its toll on many businesses, but banks stepped in to help.

He knows of one bank which increased its debt restructuring team from 14 to 85 staff; within months.

Mr Cain says there will be more pressure next year on those who are owed money, and the focus on debt recovery will make it difficult for some companies to survive.

He says companies in the retail sector are under particular stress.