Number of Negative Equity Firms Up 5.5%

Companies with bad debt increases to 339,800, with negative equity totalling £72bn The number of businesses with negative equity has risen by 5.5% in the last year to a staggering 339,800, according to research released by corporate financial health monitor Company Watch. Negative equity businesses are defined as firms with debts that exceed their assets by at least £5,000. And despite economic growth over the last few years, the number has risen significantly from 2009’s 109,383, with the total of negative equity now equalling £72bn. According to the research, the sector with the greatest number of struggling firms is media and business services companies, making up 37% (88,832) of the overall number; followed by construction firms at 11% (26,223); and finally retail at 9% (21,373). Compa... »