SOS for Business Rescue
Online News | www.bizmag.co.za | 1 February 2014
SA Leader | 1 March 2014
The current economic climate is placing businesses under severe pressure resulting in large numbers going out of business, filing for bankruptcy or turning to Business Rescue as a possible lifeline.
During 2012 the success rate for a business that applied for Business Rescue was only 8%. Initially unfavourable tax demands and stringent legal regulations, unviable business plans and the skills set of the appointed practitioners, all contributed to the low success rate of business rescue attempts. Statistics circulated by the Companies and Intellectual Property Commission (CIPC) during 2013 however reveals, the real rate of success of all businesses that have concluded their rescue operations is between 12% – 15% During 203, the number of appointments in the Western Cape alone was 15.8% less than in 2012.