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By | Paul Kunert 8th April 2013 15:07

Channel firms, rejoice: You're not going out of business nearly so often

Anyone would think we are talking up recovery

Channel insolvencies have fallen for the third consecutive quarter, according to official stats from credit reference agency Graydon UK.

Sixty-four tech suppliers hit the wall in Q1, down a whopping 28 per cent on the same period a year ago.

Broken down by type there were 45 voluntary liquidations, four compulsory liquidations and the appointment of 15 receivers.

This places company failure rates on a par with lows seen prior to the credit crunch, said Alan Norton, head of intelligence at Graydon UK.

"There is a Darwinian dynamic to this - it has been down to the survival of the fittest," he told The Channel.

Falling insolvency levels did not surprise Alastair Edwards, principal analyst at Canalys.

"It is clearly still a tough environment but most of the companies we talk to are not on a serious decline. Business is flat from a hardware perspective but they are driving services growth, and customers are still spending," he said.

The threat of the cloud still looms in the background but has "yet to have a serious impact on day-to-day run rate business," according to the Canalys beancounter.

"As long as channel partners can manage their cost - many are not working on the assumption of double-digit growth - they are not in a terminal situation," he added. ®

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