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Channel firms, rejoice: You're not going out of business nearly so often

Anyone would think we are talking up recovery

closed_sign shut down under collapsed liquidation

Channel insolvencies have fallen for the third consecutive quarter, according to official stats from credit reference agency Graydon UK.

Sixty-four tech suppliers hit the wall in Q1, down a whopping 28 per cent on the same period a year ago.

Broken down by type there were 45 voluntary liquidations, four compulsory liquidations and the appointment of 15 receivers.

This places company failure rates on a par with lows seen prior to the credit crunch, said Alan Norton, head of intelligence at Graydon UK.

"There is a Darwinian dynamic to this - it has been down to the survival of the fittest," he told The Channel.

Falling insolvency levels did not surprise Alastair Edwards, principal analyst at Canalys.

"It is clearly still a tough environment but most of the companies we talk to are not on a serious decline. Business is flat from a hardware perspective but they are driving services growth, and customers are still spending," he said.

The threat of the cloud still looms in the background but has "yet to have a serious impact on day-to-day run rate business," according to the Canalys beancounter.

"As long as channel partners can manage their cost - many are not working on the assumption of double-digit growth - they are not in a terminal situation," he added. ®

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