{"id":463260,"date":"2021-01-25T16:11:56","date_gmt":"2021-01-25T14:11:56","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=463260"},"modified":"2021-01-25T16:12:30","modified_gmt":"2021-01-25T14:12:30","slug":"the-businesses-hardest-hit-by-liquidations-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/463260\/the-businesses-hardest-hit-by-liquidations-in-south-africa\/","title":{"rendered":"The businesses hardest-hit by liquidations in South Africa"},"content":{"rendered":"

Statistics South Africa has published its latest report on liquidations and insolvencies, with the data showing an annual decrease in both categories.<\/p>\n

However, the impact of the Coivd-19 pandemic and lockdowns was clearly felt for many businesses in the latter part of 2020, with a substantial increase in liquidations seen in Q4 2020.<\/p>\n

Liquidation refers to the winding-up of the affairs of a company or close corporation when liabilities exceed assets and it can be resolved by voluntary action or by an order of the court.<\/p>\n

Overall, the number of liquidations decreased by 0.3% in 2020 compared with 2019. Liquidations of companies increased by 7.9% (from 1,079 to 1,164), while liquidations of close corporations decreased by 9,.% (from 963 to 871).<\/p>\n

Despite the annual decrease, the total number of liquidations increased by 20.5% in the fourth quarter of 2020 compared with the fourth quarter of 2019. There was also a year-on-year increase of 14.2% in December 2020.<\/p>\n

The below table highlights the business categories which reported the most liquidations in 2020:<\/p>\n

\"\"<\/a><\/p>\n

A similar trend was reported by Stats SA when looking at the country’s insolvency data.<\/p>\n

Insolvency refers to an individual or partnership which is unable to pay its debt and is placed under final sequestration.<\/p>\n

The estimated number of insolvencies decreased by 31.1% in the three months ended November 2020 compared with the three months ended November 2019. In addition, there was a year-on-year decrease of 7.6% in November 2020.<\/p>\n

However, seasonally adjusted insolvencies increased by 67.4% in November 2020 compared with October 2020. This followed month-on-month changes of -5.3% in October 2020 and 29.9% in September 2020.<\/p>\n

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Read: Not fair to close South African businesses without any financial support: Western Cape<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Statistics South Africa has published its latest report on liquidations and insolvencies, with the data showing an annual decrease in both categories.<\/p>\n","protected":false},"author":10,"featured_media":440761,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-463260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/463260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=463260"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/463260\/revisions"}],"predecessor-version":[{"id":463292,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/463260\/revisions\/463292"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/440761"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=463260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=463260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=463260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}