It was down to on-going difficulties in the economy and the funding crisis in the banking sector.
Mr Kelly said: “It is a reflection of the fact that in 12 months we have gone from a surplus to a dearth of funds.
“I have never before seen a swing like it in such a short period of time.”
Previously, struggling companies had been able to get extra financial support relatively easily. “Now even a good business which hits a bit of a problem finds trying to get funds almost impossible.”
As to the next 12 months, Mr Kelly warned: “It is going to be very challenging. Until the money supply begins to ease there are going to be continuing difficulties and an increase in the number of insolvencies.”
John has specialised in Corporate Recovery, Restructuring and Insolvency since 1977 and has accumulated an extensive experience in a wide range of sectors mainly in the East and West Midlands. A former partner in Ernst & Young and Kroll, John joined Begbies Traynor in 2004. He has gained a reputation for dealing with the more challenging cases for lending institutions whether it is for a recovery or restructuring assignments.
John is a past president of Birmingham and West Midlands Society of Chartered Accountants.