Monday, June 24, 2024

Warning for Midlands businesses as tide rises on corporate insolvencies

A rising tide of insolvent businesses in England and Wales could swell further and lead to a significant hike in corporate insolvency levels across the region for 2024.

This is according to the Midlands branch of insolvency and restructuring body R3 and follows the latest annual statistics published by the Insolvency Service which show that there were 25,158 seasonally adjusted corporate insolvencies in 2023, which is an increase of 13.7% on 2022’s figure of 22,123.

The 2023 figure is also an increase of 78.9% on the 2021 statistic of 14,059, and a rise of 46.6% on the 2019 pre-pandemic figure of 17,163.

R3 Midlands chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “Increases in Creditors’ Voluntary Liquidations (CVLs), Compulsory Liquidations and administrations have driven corporate insolvencies to a 30-year high.

“This is due to a combination of increased costs, cautious spending, creditor pressure and the post-pandemic hangover. Unless the economic picture improves, it seems likely that insolvency numbers will rise yet again this year.

“The upsurge in consumer spending that many businesses had been hoping for since the end of lockdown hasn’t happened or, at least, hasn’t been sustained, and the firms who were hanging on and hoping for it have simply run out of time and money. The current business climate is undeniably harsh.

“Our message to company directors, therefore, is simple: if you’re worried about your business, seek advice. It can be a hard conversation to have, let alone start, but there will be more options available, and more time to make a decision, if you act when your worries are fresh, rather than when they’ve spiralled.”

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.