Using data supplied by Company Watch, the research reviewed the outcomes of 4,581 administration cases in England and Wales and found that almost 2,000 (43%) of the administrations still remain in progress.

Of the 2,607 cases that are completed, 2,344 (90%) of the companies resulted in either being liquidated or being dissolved without liquidation, this includes the likes of companies such as, Comet, Blockbuster and La Senza.

The most successful outcome for administration is the liquidation of the company, out of the 2,607 completed cases, 2,061 (79%) were put into liquidation with 91 of the cases following a failed Company Voluntary Agreement (CVA).

Around 283 (11%) of the companies were dissolved without going into liquidation and 188 (7%) completed the process without the need for an insolvency procedure.

The other 3% remain active following the completion of a CVA.

Nick Hood, business risk adviser at Opus Restructuring, said: ‘Around only 30% of business rescue attempts through the administration process are successful. It’s a disappointing result, which reflects the endemic ostrich-like behaviour of struggling entrepreneurs who wait far too long before admitting they have problems. 

‘However, we believe a lot more troubled businesses could be rescued if they sought much earlier help from specialist advisers while a broader range of more constructive options can be deployed. 

‘By not soldiering on as troubles accumulate, companies that get help stand a far better chance of refinancing or restructuring, saving more jobs and achieving higher and quicker recoveries for unsecured creditors.’

The 263 companies that exited administration and remain active tend to be in the hotel and property development sectors, with 75 using a CVA as an exit route.

Out of the 1,960 companies still in administration or an ongoing CVA, 757 (39%) have been in the process for more than a year and 301 (15%) have been in administration for more than two years.

The report, Business rescue in the UK, is available here.