Liquidations show a drop of 11.9%

THE total number of liquidations decreased by 11.9% year on year last month‚ Statistics SA data showed yesterday.

The number of liquidations decreased by 15.8% in the first 10 months of this year compared with the first 10 months of last year.

The largest year-on-year decrease in liquidations last month was related to wholesale and retail trade‚ followed by catering and accommodation‚ which saw 11 fewer liquidations.

The liquidations data is used by the private and public sectors to measure economic performance and are also an important indicator of the scope of unpaid debt in South Africa.

Liquidation refers to the winding up of the affairs of a company when liabilities exceed assets‚ and it can be resolved by voluntary action or by an order of the court. – BDlive