The statistics revealed that there were 5,055 liquidations in the second quarter of 2009, up from 3,635 in the same period last year. It is the eighth consecutive quarter in which liquidations have increased.

It appears that liquidations are now the closure method of choice, with the number of administrations on the way down since reaching a plateau in the final quarter of last year.

Q2 figures showed 1,027 administrations, compared to 1,311 in the first quarter of the year and 2,018 in the last quarter of last year. The figure is still up 10% on the same period in 2008.

Receiverships also continued to increase, jumping 95% to 345, while Company Volutary Agreements (CVAs) were up 20% to 157.

David Chubb, partner in the business recovery services practice at PricewaterhouseCoopers LLP, said: "The administration process was designed to help rescue businesses and the figures suggest that there are a growing number of businesses that cannot be rescued using this process.

"Within the numbers it is notable that whilst administrations have fallen compared to the previous quarter, Creditor Voluntary Liquidations (CVLs), which normally result in the closure of a business, are continuing to increase.

"The reasons for not using the administration process are probably due to a combination of the continuing difficult economic climate and the fact that businesses are being run down to a point beyond any possible rescue."

As employers struggle to stay in business, things are not looking any better for employees either, according to the British Chamber of Commerce (BCC).

A recent survey of 450 companies across the UK found that 51% were considering making redundancies in the next six months. More than 10% said that redundancies were a certainty.

Adam Marshall, director of policy at the BCC, said: "With half of firms still thinking about cutting their workforce by the end of the year, the government must continue to promote measures to stimulate growth in investment and jobs."