Walsall surveyors warn 'worse to come' after 'surge' in company liquidations over Christmas

Walsall-based chartered surveying company Kumar and Company is handling around 17 insolvency auctions in the wake of company failures over recent weeks and months, across a broad range of business sectors, they say.

The firm acts for insolvency practitioners, local authorities and private businesses across the UK.

Most recently the company says the liquidation of Coventry-based Quantum IT Distribution Ltd is amoung a "surge" of insolvencies which have ocurred as a result of additional pressures experienced over the festive period.

“It is among a surge in liquidations and insolvencies across the Midlands over recent months. We are handling some 17 cases, including businesses in the hospitality and food sector, manufacturers and IT companies," said Rajiv Kumar, managing director.

“The Christmas period always seems to bring additional business pressures, with rising costs and quarterly rent increases in January.

“But there are clear signs that the worst is yet to come this year. Along with a tough economic climate companies are facing several challenges including the Chancellor’s increases in employers’ National Insurance.

“Business confidence has taken a hit and where normally we would expect a slowdown in instructions after a Christmas spike, we are currently expecting to continue dealing with the current high rate of instructions.”

However Mr Kumar added that there were more hopeful indicators among the doom and gloom.

“We are seeing some brighter signs, for instance we have been asked to handle the sale of older tools and equipment, such as an excavator and a forklift truck, by Derby building firm Stone Construction, as they invest in new kit," he added.

More than 60 lots from Quantum IT Distribution, including keyboards and computer mice, are being sold through an online auction running until Tuesday, February 25.