Posts tagged "insolvency"

Monthly business insolvencies have risen to a level not seen since 2015, as a long-expected landslide of corporate collapses hits the Australian economy.

The number of business insolvencies boomed in late 2023 and is poised to accelerate in 2024, official data shows, but industry leaders professionals say the growing use of the small business restructuring scheme is a silver lining.

Constrained consumer spending, interest rate anxiety, and sheer exhaustion are likely to weigh on small businesses in 2024, advocates say, as entrepreneurs seek opportunity in what could be another challenging year.

The number of small businesses turning to the Australian Small Business and Family Enterprise Ombudsman for assistance with insolvencies spiked in the September quarter, revealing how corporate collapses are leaving local traders grasping for help.

Australia's business failure rate is only set to rise over the next year, analytics firm CreditorWatch states, as persistently high interest rates and lower consumption squeeze enterprises struggling to maintain profitability.

Whole Kids, a food brand that makes healthy snacks for children, has entered voluntary administration, months after trying equity crowdfunding for a third time.

One in four personal insolvencies recorded in June were business-related, as officials and bankruptcy professionals alike prepare for insolvencies to rise over the next year.

Australia's corporate and personal insolvency laws should face a comprehensive review, and improvements to small business restructuring pathways should be investigated as a priority, according to a massive report on the nation's insolvency regime.

Construction company collapses have surged over the last 12 months, as Australian builders battle the end of COVID-era economic stimulus, vulnerabilities in long-established payment models and the impact of rapid inflation and interest rate rises.

The number of court actions filed by the ATO has surged above pre-COVID levels, new figures show, as turnaround professionals urge small businesses to grasp the "last olive branch" extended to firms with outstanding debts.

Debt collection efforts at the ATO are now on a "firmer footing" than in recent years, Deputy Commissioner Will Day has confirmed, with the number of court actions initiated by the tax office expected to hit pre-COVID levels this year.

A new small business restructuring process designed to keep owners in control has suffered an "embarrassingly" low take-up, an industry leader says.