ASIC reveals ‘alarming’ increase in companies ‘going bust’

Sky News Business Editor Ross Greenwood says the corporate regulator ASIC today showed an “alarming” increase in the number of companies “going bust”.

In the nine months to March 31, it says 7,742 businesses had collapsed – a 36 per cent increase on the same period last year.

The greatest number of collapses happened in construction, as well as in accommodation and food services.

Those two industries alone accounted for more than 40 per cent of all corporate failures.

ASIC says the year to June 30 will likely see more than 10,000 companies in external administration or going bust – the largest number in 11 years.

Of the total number of companies that exist – around 3.3 million – the ratio of companies going bust is expected to be around one in 30.

Видео ASIC reveals ‘alarming’ increase in companies ‘going bust’ канала Sky News Australia