Company collapses hit record high - Australia

So is this the fruit of the economic recovery we're all suppose to be hoping for? The highest number of company insolvencies in a given month on record in Australia?

Australian News Feed

THE number of company collapses hit a record high in February as businesses continued to suffer lagging effects from the global financial crisis.

And Queensland and Western Australia experienced high levels of companies going bust despite the resources boom in those states.

Accounting firm Taylor Woodings, a specialist in restructuring and corporate recovery, on Thursday released its analysis of insolvency data for February 2012 from the Australian Securities and Investments Commission (ASIC).

Taylor Woodings said the number of company collapses more than doubled to 1,123 in February 2012 - the highest monthly insolvency figure on record - from 518 in January 2012.

But insolvencies in February 2012 were 31 per cent higher than in February 2011 and up 47 per cent on the five-year February average of 766.

"The latest insolvency figures reflect the difficulties facing many retail, tourism, building and construction and property development businesses with the global financial crisis continuing to have a lag effect," Taylor Woodings said.

Taylor Woodings said the February figures were an early indication that during calendar 2012, the number of insolvencies were likely to remain at GFC levels.

"March typically records a marked increase in insolvency figures," Taylor Woodings said.

"Next month's figures will be an important indicator for the remainder of the year."

Will certainly be interesting to see the March insolvency figures, along with a whole lot of other Australian and worldwide data. I gots my popcorn.

Yep, seen alot of companies go down in my field this year... also alot of people out of work.
Dont see it getting better unfortunatly.
But i do think this is a good thing, Society needs to be rebuilt ground up.

it's the result of an over inflated economy that's been going on for years. it's no surprise that the amount of hedging and creating money out of thin air would eventually catch up to us all. when governments tell their people it's ok, the economy will be getting better or is getting better is just their way of keeping us from panicking and making it fall faster, but fall it will unfortunately.

i look at it as a good thing though, maybe we can weed out the bad apples and move on to some real good living made from real work for everyone, instead of the BS system we have now. imagine value being placed on good work done by good people.

you may all be gobsmacked by what i heard the other day. i was listening to local radio in texas the other day via the internet...(wanted tornado info)...when the commentator reads out that if you are out of work..get to your nearest aussie embassy and apply to go to australia on a working visa. he said the government was looking for tradies i.e plumbers, electricians etc. listed about 15 professions. said the government was desperate for workers because of the boom in australia due to china boom.

i happen to know some tradies who would be willing to go anywhere..anytime in australia for work. THEY CANT GET ANY. are the government trying to speed up our collapse???

reply to post by bellagirl


YESSS!!!! This infuriates me! We have majority of A class tradesman here out of work, and their importing more immigrants to fill the few jobs we have? WTF!

Theirs barely enough building go on to keep the bills paid!

reply to post by bellagirl


I think they are trying to promote a collapse, either that or enforce Racism...

I think the import of American tradies is to afford Australian companies with paying lower wages. I'm not sure on this one though, but what are the industrial laws for working visas that may differ from regulations with employing Australian citizen workers?

Originally posted by hoonsince89
Yep, seen alot of companies go down in my field this year... also alot of people out of work.
Dont see it getting better unfortunatly.
But i do think this is a good thing, Society needs to be rebuilt ground up.

That's what I think too. The money system needs a total collapse, otherwise it will just continue.

Sure a lot of people will suffer, some may even die. But that is the law of nature, the strong have more chance of surviving than the weak. The weak are those who have become that domesticated, they cannot survive without money.

A good time to learn a bit about aquiring food, water and shelter the natural way...

Companies want the cheapest labor they can find for their goals. It's like the law of gravity. Companies aren't like families; they don't hold onto you because they love you. It's all about the highest profit.

Sometimes I wonder if Iran and North Korea and other barbarian nations and globalization and anthropogenic global warming and the economic probelms are just a repeat of what happened to Rome. I think Rome collapsed because it stretched out beyond its means. It was unable to meet its responsibilities because of lack of knowledge and technology. I think something similar might be happening in our world. At some point, we're going to stretch beyond our means. When we do, we'll lose some ground.

Maybe collapses happen periodically because we always will stretch too far eventually. We can't always make perfect choices about these sorts of things. If a butterfly can cause a hurricane...

Any eventually collapse could be centuries away, though. Or maybe thousands of years?

I don't hope for a collapse. I hope we're not at the stage of failing as a global civilization.

Originally posted by NuclearPaul

Originally posted by hoonsince89
Yep, seen alot of companies go down in my field this year... also alot of people out of work.
Dont see it getting better unfortunatly.
But i do think this is a good thing, Society needs to be rebuilt ground up.

That's what I think too. The money system needs a total collapse, otherwise it will just continue.

Sure a lot of people will suffer, some may even die. But that is the law of nature, the strong have more chance of surviving than the weak. The weak are those who have become that domesticated, they cannot survive without money.

A good time to learn a bit about aquiring food, water and shelter the natural way...

Good advice, ive started a garden and am looking into being as self sufficient as possible. Especially now that i have no job!

well i also have a little tale too tell regarding how tough it is at the moment.

in november last year...my husband put his arm out to push himself up and million to one shot, he tore the bicep muscle right of the bone. now he is a butcher. been at the same shop for 10 years now. only the owner, his wife, a shop girl and my old man...so small business. when it happened i rang them and their first comment was "jeez..he probably only has his 4 weeks holidays that he is having at christmas". i knew it was much more he had in holidays as he only ever was given just over two weeks every year. they saw the accountant and too their horror he was owed almost 20 weeks holidays. they were gobsmacked. panicking we would want all the money up front. not the case. told them just keep paying the weekly wage as per normal every week. dont worry about the leave loading. he will be back in about 6 weeks. when he gets the clearance to go back he goes and sees the boss. he is given an absolute gobfull. the boss is beside himself with anger. he says "mate.. i have been doing all the work, paying you a wage to sit at home injured, dont come back, i will just pay you every week like normal till your holidays finished then thats the end of your job". "i might get you in maybe a couple of hours 2 days a week when i want".

my point here is, he didnt care when my old man worked 21 days straight so they could go away on holidays and know there business was in the best hands and every single dime would be there when they got back. he didnt care when he knocked off early every day and said you close up. didnt care when he flew all over the country following his beloved footy team. golf every wednesday.. he lived the life of riley. and good luck to him - he owned the business he was the boss and could do all that.

BUT the moment he had to live up too his responsibility, he whinged, he cried, he swore, he stamped his feet like a little kid spat the dummy and laid my husband off.

mind you i did have one little sweet moment. when they finished paying the holidays, i reminded them about their obligations regarding long service leave. woohoo.

reply to post by bellagirl



Sounds like my old boss, but i quit last year and have never looked back.

I think your partner is to loyal to work for someone like that anyway by the sounds of it!