Sunday, December 5, 2021

Business insolvencies at highest level since January 2020

The economic effects of the pandemic continue to impact heavily on local businesses as latest Government insolvency statistics highlight an increase in corporate insolvencies to their highest level since January 2020.

Monthly research by the Insolvency Service shows that the number of insolvent businesses in England and Wales increased by 7.2% in September to a total of 1,446, which is 55.8% higher than September 2020’s figure of 928 and approaching the pre-pandemic statistic of 1,515 for January of last year.

According to the Midlands branch of insolvency and restructuring body R3, the dramatic increase in corporate insolvencies compared to this time last year illustrates just how crucial the Government’s support has been in keeping businesses afloat and suggests that there may be a rocky road ahead for many now it has ended.

R3 Midlands Chair Eddie Williams, a partner at PwC in the East Midlands, said: “The monthly rise in corporate insolvencies was driven by Creditors’ Voluntary Liquidations, which have increased for the third consecutive month. Directors may be closing their businesses after deeming financial survival unlikely after 18 months of struggling through a pandemic.

“Despite the fact that businesses have benefitted from two months of restriction-free trading and the economic boost over the summer, conditions are still not back to where they were before Covid-19.

“Consumers are now more cautious about the state of the economy and the growing cost of living and are more wary about spending their money. With widespread supply chain disruption and significant wholesale energy price increases building up between September and October, there is likely to be little slack for vulnerable businesses.

“For those companies continuing to struggle, the sooner advice is sought from a qualified and reputable source, the more potential there is for a solution.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.







Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close