The businesses hardest hit by liquidations in South Africa right now – Stats SA

STATISTICS South Africa has published its latest report on liquidations and insolvencies, pointing to a significant increase in liquidations since the start of the year.

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.

The data shows that the total number of liquidations recorded decreased by 2.1% in May 2021 compared with May 2020, with a total of 191 liquidations reported over the course of the month.

However, the total number of liquidations increased by 37.5% in the first five months of 2021 compared with the first five months of 2020.

When comparing quarterly liquidations on an annual basis, the number of liquidations increased by 66.2%.

The below table highlights the business categories which reported the most liquidations for the first five months of 2021.