Vernon Mchunu vernon.mchunu@inl.co.za STATISTICS SA revealed a gloomy picture of a nearly 50% spike in the number of businesses that have been thrown into liquidation, a situation blamed squarely on the Covid-19 lockdown.
The total number of liquidations increased by 49.0% (71 more cases) in March this year, compared with March last year (before the lockdown), according to figures released this week.
While voluntary liquidations rocketed by 61 cases, compulsory liquidations spiked by 10. The total number of liquidations rose by 18.9% in this year’s first quarter, compared with the first quarter of 2020.
The hardest hit industries included manufacturing, construction, trade, catering, accommodation, financing, real estate, insurance, business services and social services. The agriculture, hunting, forestry and fishing sectors were reported as the least affected.
The estimated number of…