DOLLAR LIABILITIES FROM U.S. BUSINESS FAILURES ARE UP 57 PERCENT IN FIRST-QUARTER 1996; 18,000 U.S. Businesses Fail in First Three Months, Down 2 Percent from Year-Ago, According to a Dun & Bradstreet Report.WILTON Wilton, town, United States Wilton, town (1990 pop. 15,989), Fairfield co., SW Conn.; settled c.1701, inc. 1802. It is a residential and agricultural town. Wilton, town, England Wilton, town (1991 pop. , CONN CONN Connecticut (old style) CONN Connection CONN Connector CONN Connotation .--(BUSINESS WIRE)--April 26, 1996--The number of U.S. business failures in the first quarter of 1996 declined by 2 percent compared with the year-ago quarter. However, the dollar liabilities associated with those failures jumped 57 percent, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. The Dun & Bradstreet Brad·street , Anne Dudley 1612-1672. English-born colonial poet who wrote several collections of verse, including The Tenth Muse Lately Sprung Up in America (1650). Corporation, continuing a trend that began in the second half of 1995. There were 18,233 failed businesses reported in the first three months of 1996. Those businesses left unpaid debts totaling $8.6 billion, versus the year-ago period, when 18,648 businesses closed with total liabilities of $5.4 billion. "While the level of debt from business failures seems to be rising at an alarming rate compared with last year, it should be noted that half of all liabilities reported in the first quarter came from failures in January January: see month. ," said Joseph W. Duncan Duncan, city (1990 pop. 21,732), seat of Stephens co., SW Okla., in an oil, farm, and cattle area; inc. 1892. There is an oil industry, and electronics, concrete, and apparel are manufactured. During the late 19th cent. , vice president and chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the for The Dun & Bradstreet Corporation. "On a month-by-month basis, January liabilities were up 95 percent from the year-ago period, February's were up 69 percent and March was up only five percent. This monthly trend, placed in context with the preceding acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. in liabilities, may in fact indicate a gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. recovery from the slow-growth conditions of late 1995." NOTE TO EDITORS The 1996 figures are labeled preliminary because the level of liabilities is continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. adjusted as court proceedings evolve Evolve may refer to several terms:
Regional Results Mixed While there was little change in the overall number of U.S. business failures during the first quarter, results by region were mixed. Two of the nine U.S. Census Bureau Noun 1. Census Bureau - the bureau of the Commerce Department responsible for taking the census; provides demographic information and analyses about the population of the United States Bureau of the Census regions, the South Atlantic and West North Central states, showed improved failure levels and liabilities. The Pacific states The Pacific States form one of the nine geographic divisions within the United States that are officially recognized by that country's census bureau. There are five states in this division — Alaska, California, Hawaii, Oregon, Washington — and, as its name reported a 30-percent decline in liabilities, the largest improvement of any region of the U.S., and showed only a 2 percent rise in the number of failures. However, both the East South Central and the West South Central regions posted increases, both in numbers in numbered parts; as, a book published in numbers. See also: Number of failures and failure-related debt, as did the Mountain states The Mountain States (also known as the Mountain West) form one of the nine geographic divisions of the United States that are officially recognized by the United States Census Bureau. . New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , the Middle Atlantic Adj. 1. middle Atlantic - of a region of the United States generally including Delaware; Maryland; Virginia; and usually New York; Pennsylvania; New Jersey; "mid-Atlantic states" mid-Atlantic region and the East North Central states were all consistent with the overall results, with lower numbers of failures but increased dollar liabilities. On a state-by-state level, lower numbers of business failures did not necessarily indicate improved economic health in the region. "This suggests that a high percentage of failures involved mid-sized to large businesses with relatively high levels of debt," Duncan commented. "The slow growth late last year took its toll on businesses which had counted on sustained expansion, and the resulting high-debt failures showed up in the new year. It therefore seems likely that both failures and liabilities will stabilize stabilize See peg. by mid-year. However, those states that were hardest hit by liabilities will probably experience a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. ripple effect ripple effect Epidemiology See Signal event. of secondary failures resulting from the first wave of large businesses failing." South Atlantic and West North Central Regions Show Strongest Results First-quarter business failures fell 10 percent in the South Atlantic states The South Atlantic United States form one of the nine divisions within the United States that are recognized by the United States Census Bureau. This division includes nine states — Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West and liabilities were down 1 percent compared with the first quarter of 1995. However, Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). had notable increases in failures, both in terms of numbers and liabilities. South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. also showed a dramatic increase in failure-related debt, despite a 41-percent drop in the number of failures. The West North Central states performed well, with a 4-percent decline in the number of failures, and a 2-percent drop in liabilities. Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). and Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). were the exceptions in the region, posting double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. increases in both failures and dollar liabilities. The New England states reported the most significant decline in number of failures during the period. The region reported 789 failures, a reduction of 14 percent from the same period last year. However, liabilities were up in half the states. In Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). , liabilities jumped from $34 million in the first quarter of 1995 to $479 million in the first quarter of 1996, despite a slight reduction in the number of business failures. Similarly, first-quarter failures were down 11 percent in the East North Central states, but liabilities increased by 85 percent. Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). led the region with a massive rise in liabilities, from $23 million to nearly $600 million, although the number of failures was down slightly. The Middle Atlantic states Middle Atlantic States also Mid-At·lan·tic States The U.S. states of New York, Pennsylvania, New Jersey, and usually Delaware and Maryland. posted a 3-percent decline in the number of first-quarter business failures, but had the highest liabilities of any region, increasing 322 percent from the first quarter of 1995. This was primarily due to $2.5 billion in liabilities posted in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of during the quarter, up from $333 million in 1995. South Central Regions and Mountain States Post Higher Failures and Liabilities The Mountain states reported the nation's largest increase in first-quarter failures, up 13 percent to 1,345. Liabilities were up 52 percent to $225 million. Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. was the biggest contributor to the region's results, with $156 million in liabilities and a 69-percent rise in the number of failures. Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). and Utah were notable exceptions in the region, posting decreases in both number of failures and dollar liabilities. The East South Central states The East South Central States constitute one of the nine geographic divisions within the United States that are officially recognized by that country's census bureau. Four states comprise the division: Alabama, Kentucky, Mississippi, and Tennessee. charted a 4-percent rise in failures in the first quarter of 1996, and a 39 percent increase in liabilities, to $166 million. The bulk of the failure-related debt in the region was in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). . Liabilities in Alabama rose from $3 million in the first quarter of 1995 to $137 million in the first quarter of 1996. The West South Central states The West South Central States form one of the nine geographic divisions within the United States that are officially recognized by the United States Census Bureau. Four states comprise the division: Arkansas, Louisiana, Oklahoma, and Texas. had a 2-percent increase in failures. However, liabilities in the region climbed 184 percent to $1.1 billion. Texas reported the biggest portion of this increase, with liabilities of $882 million, up 188 percent from the first quarter of 1995. Agriculture and Finance Industries Hardest Hit; Manufacturing Sector Shows Decline in Both Failures and Liabilities Three industry sectors reported higher levels of both failures and liabilities compared to the first quarter of 1995. The largest increase in failures nationwide was reported by agricultural, forestry forestry, the management of forest lands for wood, water, wildlife, forage, and recreation. Because the major economic importance of the forest lies in wood and wood products, forestry has been chiefly concerned with timber management, especially reforestation, and commercial fishing industries, with a 43-percent increase over the year-ago period. Liabilities for the sector rose 34 percent. The finance, insurance and real estate sector saw an 18 percent increase in failures, and liabilities climbed 123 percent. Retail businesses also logged a sharp rise in liabilities in the first quarter of 1996, up 92 percent from the year-ago quarter. But the number of retail failures rose only 2 percent. The manufacturing sector reported the strongest results of any industry. First-quarter failures dropped 5 percent from the year-ago quarter, and the total debt from these failures fell by 19 percent. While failures in the mining and construction sectors increased by 6 and 11 percent, respectively, associated liabilities dropped for both industry groups, by 41 and 21 percent. "The early months of 1996 saw both a reduction in consumer confidence and very severe winter weather that led to reduced spending on food, travel, clothing and other retail goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. in many parts of the country," Duncan noted. "Although heavy industrial businesses such as mining and manufacturing experienced somewhat higher failure levels, the drop in liabilities seems to indicate that these businesses entered into the season with a fairly realistic outlook, spent conservatively, and hence, those that failed had a smaller overall impact on the economy." "Consumer-oriented businesses such as travel and retail trade fared less well," Duncan continued. "Moreover, finance and real estate businesses apparently suffered as many potential investors and property buyers waited for some clear sense of direction in the economy prior to committing their resources." The services and wholesale sectors posted decreases in business failures, by 7 and 6 percent, respectively. However, both sectors saw increased liabilities, up 40 percent for service businesses and 36 percent for the wholesale trade. Nonclassifiable businesses also had 25 percent fewer failures in first-quarter 1996, with liabilities up 39 percent. Dun & Bradstreet's business failure statistics include businesses that ceased operation following assignment or bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most ; ceased operation with losses to creditors after such actions as foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. or attachment See attach a file. ; voluntarily withdrew leaving unpaid obligations; were involved in court actions such as receivership receivership In law, state of being in the hands of a receiver, a person appointed by the court to administer, conserve, rehabilitate, or liquidate the assets of an insolvent corporation for the protection or relief of creditors. , reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. or arrangement; or voluntarily compromised with creditors. Businesses that closed with creditors paid in full are not included in the report. The Dun & Bradstreet Corporation is the world's leading marketer of business information, software and services for business decision making, with worldwide revenue of $5.4 billion in 1995. (See attached tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. data) -0-
THE DUN & BRADSTREET CORPORATION - ECONOMIC ANALYSIS DEPARTMENT
BUSINESS FAILURES REGIONAL ANALYSIS, MARCH 1996 YEAR TO DATE
1995 1995
Firms Liabilities
------- --------------
NEW ENGLAND 912 $374,148,024
Maine 84 $18,360,209 New Hampshire 92 $19,553,079 Vermont 36 $11,534,889 Massachusetts 520 $278,580,368 Connecticut 139 $33,716,422 Rhode Island 41 $12,403,057 MIDDLE ATLANTIC 2,831 $678,696,004 New York 1,376 $332,722,784 New Jersey 693 $71,165,979 Pennsylvania 762 $274,807,241 EAST NORTH CENTRAL 2,052 $545,829,339 Ohio 549 $104,850,311 Indiana 223 $23,070,149 Illinois 511 $154,514,017 Michigan 437 $233,077,853 Wisconsin 332 $30,317,009 WEST NORTH CENTRAL 1,072 $170,716,000 Minnesota 273 $71,826,965 Iowa 148 $8,543,187 Missouri 271 $41,204,757 N. Dakota 31 $1,659,601 S. Dakota 49 $4,031,598 Nebraska 67 $2,028,979 Kansas 233 $41,420,913 SOUTH ATLANTIC 2,637 $842,313,507 Maryland 455 $91,688,440 Delaware 8 148,170 District of Col. 45 $42,701,390 Virginia 424 $312,255,244 W. Virginia 78 $8,290,715 N. Carolina 216 $23,805,357 S. Carolina 156 $613,565 Georgia 421 $201,392,769 Florida 834 $161,417,857 EAST SOUTH CENTRAL 680 $119,477,568 Kentucky 226 $93,597,597 Tennessee 243 $8,781,093 Alabama 136 $3,028,758 Mississippi 75 $14,070,120 WEST SOUTH CENTRAL 2,261 $376,451,480 Arkansas 158 $15,447,710 Oklahoma 302 $34,617,637 Louisiana 184 $20,292,474 Texas 1,617 $306,093,659 MOUNTAIN 1,194 $147,924,621 Montana 59 $10,022,781 Idaho 97 $0 Wyoming 20 $107,462 Colorado 335 $70,471,652 New Mexico 105 $8,258,975 Arizona 352 $34,605,929 Utah 103 $12,689,310 Nevada 123 $11,768,512 PACIFIC 5,009 $2,179,535,412 Alaska 23 $239,668 Hawaii 71 $20,885,737 Washington 596 $263,806,429 Oregon 191 $19,394,563 California 4,128 $1,875,209,015
TOTAL U.S. 18,648 $5,435,091,955
-0-
Firms Liabs.
1996 1996 % %
Firms Liabilities Change Change
------- -------------- -------- --------
NEW ENGLAND 789 $687,731,785 -13.5% 83.8% Maine 72 $12,026,075 -14.3% -34.5% New Hampshire 94 $30,048,365 2.2% 53.7% Vermont 34 $4,323,922 -5.6% -62.5% Massachusetts 419 $119,297,299 -19.4% -57.2% Connecticut 136 $479,061,130 -2.2% 1,320.9% Rhode Island 34 $42,974,994 -17.1% 246.5% MID ATLANTIC 2,746 $2,866,316,267 -3.0% 322.3% New York 1,279 $2,533,817,098 -7.0% 661.5% New Jersey 688 $119,561,692 -0.7% 68.0% Pennsylvania 779 $212,937,477 2.2% -22.5% EAST NORTH CENTRAL 1,821 $1,008,005,293 -11.3% 84.7% Ohio 558 $170,069,141 1.6% 62.2% Indiana 221 $579,090,862 -0.9% 2,488.2% Illinois 365 $153,095,617 -28.6% -0.9% Michigan 409 $59,858,535 -6.4% -74.3% Wisconsin 268 $27,891,138 -19.3% -8.0% WEST NORTH CENTRAL 1,028 $167,672,113 -4.1% -1.8% Minnesota 189 $59,010,884 -30.8% -17.8% Iowa 116 $5,652,072 -21.6% -33.8% Missouri 268 $32,144,653 -1.1% -22.0% N. Dakota 20 $2,036,215 -35.5% 22.7% S. Dakota 42 $3,521,800 -14.3% -12.6% Nebraska 95 $2,505,608 41.8% 23.5% Kansas 298 $62,800,881 27.9% 51.6% SOUTH ATLANTIC 2,385 $836,985,431 -9.6% -0.6% Maryland 500 $251,193,616 9.9% 174.0% Delaware 19 $54,731,019 137.5% 36,838.0% District of Col. 44 $19,087,228 -2.2% -55.3% Virginia 262 $216,116,263 -38.2% -30.8% W. Virginia 77 $14,713,906 -1.3% 77.5% N. Carolina 292 $131,723,666 35.2% 453.3% S. Carolina 92 $23,459,865 -41.0% 3,723.5% Georgia 341 $41,807,758 -19.0% -79.2% Florida 758 $84,152,110 -9.1% -47.9% EAST SOUTH CENTRAL 706 $165,626,884 3.8% 38.6% Kentucky 177 $3,917,590 -21.7% -95.8% Tennessee 314 $13,095,037 29.2% 49.1% Alabama 149 $137,081,941 9.6% 4,426.0% Mississippi 66 $11,532,316 -12.0% -18.0% WEST SOUTH CENTRAL 2,314 $1,068,663,671 2.3% 183.9% Arkansas 253 $ 20,403,200 60.1% 32.1% Oklahoma 375 $158,876,500 24.2% 358.9% Louisiana 84 $ 6,950,956 -54.3% -65.7% Texas 1,602 $882,433,015 - 0.9% 188.3% MOUNTAIN 1,345 $224,569,707 12.6% 51.8% Montana 42 $ 2,338,697 -28.8% -76.7% Idaho 78 $ 645,713 -19.6% 0.0% Wyoming 29 $ 0 45.0% -100.0% Colorado 565 $155,879,583 68.7% 121.2% New Mexico 122 $ 12,332,442 16.2% 49.3% Arizona 321 $ 34,882,373 -8.8% 0.8% Utah 90 $369,827 -12.6% -97.1% Nevada 98 $ 18,121,072 -20.3% 54.0% PACIFIC 5,099 $1,525,820,325 1.8% -30.0%
Alaska 31 $ 338,600 34.8% 41.3%
Hawaii 105 $ 18,005,206 47.9% -13.8%
Washington 721 $ 175,602,645 21.0% -33.4%
Oregon 176 $ 24,031,243 -7.9% 23.9%
California 4,066 $1,307,842,631 -1.5% -30.3%
______________ _______________ ________
-------------- --------------- --------
TOTAL U.S. 18,233 $8,551,391,476 -2.2% 57.3%
Data for 1995 are final; 1996 figures are preliminary. (c) Copyright 1996 The Dun & Bradstreet Corporation, Connecticut.
THE DUN & BRADSTREET CORPORATION - ECONOMIC ANALYSIS DEPARTMENT
BUSINESS FAILURES INDUSTRY ANALYSIS, MARCH 1996 YEAR TO DATE
Fails Fails
Last This
Industry Year Year Change
---------------------------- ------ ------ ------
Agriculture/forestry/fishing 495 707 42.8%
Mining 50 53 6.0%
Construction 2,271 2,530 11.4%
Manufacturing 1,196 1,142 -4.5%
Transportation/utilities 721 804 11.5%
Wholesale 1,126 1,055 -6.3%
Retail 3,348 3,415 2.0%
Finance/insurance/real estate 1,008 1,176 16.7%
Services 5,701 5,288 -7.2%
Nonclassifiable 2,732 2,063 -24.5%
====== ====== =====
18,648 18,233 -2.2%
Liabilities Liabilities
Last This
Industry Year Year Change
---------------------------- ------ ------ ------
Agriculture/forestry/fishing $77,820,281 $104,478,737 34.3%
Mining $13,832,898 $ 8,215,567 -40.6%
Construction $481,224,378 $379,896,409 -21.1%
Manufacturing $604,414,448 $492,012,663 -18.6%
Transportation/utilities $324,964,785 $639,065,620 96.7%
Wholesale $254,458,561 $344,699,341 35.5%
Retail $877,384,345 $1,685,269,631 92.1%
Finance/insurance/real estate $1,186,165,445 $2,643,644,325 122.9%
Services $1,199,236,638 $1,678,675,705 40.0%
Nonclassifiable $415,590,176 $575,433,478 38.5%
====== ====== =====
$5,435,091,955 $8,551,391,476 57.3%
Data for last year (1995) are final; this year (1996) figures are preliminary. (c) Copyright 1996 The Dun & Bradstreet Corporation, Connecticut. CONTACT: The Dun & Bradstreet Corporation Neil DiBernardo (203) 834-4263 |
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