Last year saw a significant rise in both distributor & supplier companies ceasing trading compared to the previous year (2007). Distributor company closures experienced the greater number at 79, compared to the closure of 41 supplier companies. Distributor company closures increased by 61% based on the number of distributors that ceasing trading in 2007.
Supplier companies experienced a 105% increase in the number of companies ceasing trading (20 to 41). This possibly indicates the vulnerability for supplier companies in an economic downturn, particularly handling the collective pressures of falling sales, together with stock investment & credit terms risk in a volatile marketplace.
Collectively the number of companies ceasing trading in the promotional merchandise industry rose in 2008 by 74% compared to the 2007 figures. (69 to 120.) (Full report attched.)

Published on: January 9th, 2009