Record number of firms collapse

The number going into administration exploded almost fourfold in 12 months from 575 in the last three months of 2007 to 2,018 in the same period last year, according to the Insolvency Service.

Administration is the route taken by bigger firms when they cannot pay their debts. An administrator is appointed by creditors on their behalf to run the business and attempt to find a buyer. Experts warned 11 household name chains could disappear in the next three months.