CFO magazine notes business failures overall have been declining despite recent headlines on high profile bankruptcies of companies like Harry & David and Borders.
Based on recent data from Dun & Bradstreet, CFO said formal bankruptcy filings in 2010 were down more than 5% from 2009, while a broader estimate of business failures fell about 13.5%. Based on the data, transportation was the industry with the highest failure rate in 2010, followed by construction, CFO notes.
A senior executive from D&B is quoted as saying in the CFO article, “We’re seeing that the economy is improving, but there’s still a high degree of failure risk in the system.” If the recovery happens too slowly, the executive warned, “failure rates could kick back up rather quickly.”
To read the full text of the CFO magazine article:
click here.
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