Surge in county’s bankruptcy cases (From The Oxford Times)

Surge in county’s bankruptcy cases

10:00am Monday 30th January 2012 in Bicester By Chris Koenig

THE number of people petitioning for bankruptcy in Oxfordshire has risen by almost 10 per cent in a year, latest figures have revealed.

Statistics from the Insolvency Service show that between January and the end of September last year there were 385 petitioners, compared to 351 in the same period in 2010.

In Oxfordshire as a whole the total number of people becoming bankrupt, entering into Individual Voluntary Arrangements or Debt Relief Orders has increased from 4.7 people in every 10,000 in 2001, to 27 people in 2009 – the latest year for which figures are available.

In 2001 there were 275 affected individuals in the county, according to statistics from the Insolvency Service, and in 2009 there were 1,359.

Nationally there were 7,434 people registered as insolvent in the third quarter of 2001. In the same quarter of 2011 there were 30,219 Lizzie Irons, director of Oxfordshire Family Mediation, said she expects to see a rise in family problems caused by bankruptcy.

She said: “The added stress of bankruptcy is an added strain on a relationship. And the pressure on family relationships can just double.”

Retail experts reckon the growing financial squeeze on individuals is having a knock-on effect for high street retailers with the list of those hitting the rocks lengthening.

Graham Jones, spokesman for the Oxford High Street Business Association, said: “There is a downward spiral with this knock-on effect.

“As more people feel the pinch they cease to spend money in shops – and more retailers then go into administration.”

He added: “These are tough times and independent retailers will now think very carefully about buying in more stock – which of course will affect the supply chain further up the line.”

Household names that have either gone into administration or applied to do so in the last couple of months include: Past Times, Barratts Shoes, lingerie company La Senza, toy retailer Hawkins Bazaar, and Blacks Leisure, all of which had outlets in the county.

On top of these, Little Chef has announced the closure of 67 of its 161 outlets and Thomas Cook has rescheduled its debts.

The total number of retailers in England and Wales falling into administration in 2011 increased by 11 per cent to 183, compared to the previous year, according to research by business advisers Deloitte.

Lee Manning, Deloitte’s restructuring services partner, said 2011 was a “tough year” for retailers and expected the trend to continue in 2012.

He added: “Many retailers would have been banking on the busy Christmas period to give them a much-needed sales uplift, but retailers were forced into discounting at levels last seen in the aftermath of the collapse of Lehman Brothers, putting severe pressure on margins.”

Findings from Deloitte’s recent Consumer Tracker, a new regular monitor of consumer confidence and spending habits, found that one in five households had seen a reduction in income as a result of unemployment, loss of bonuses, reductions in overtime and increased part-time working.