Corporate insolvencies more than double in third quarter
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The number of corporate insolvencies seen across the Midlands more than doubled in the third quarter of 2021 as inflation and supply-chain pressures started to bite and Government COVID-19 support measures began to unwind.
Analysis of notices in The Gazette by Interpath Advisory reveals that a total of 19 companies fell into administration or receivership from July to September 2021 – up from eight in Q2 2021, though down from the 25 seen during the same period last year.
This mirrors the national picture, which saw UK administrations and receiverships increase by 26% in the third quarter of 2021 – from 123 in Q2 2021 to 155 in Q3, albeit this was significantly down from the 243 appointments during the comparative period in 2020, and still at only 39% of pre-Covid levels when compared to the 401 appointments in Q3 2019.
Chris Pole, managing director and head of the Midlands team at Interpath Advisory, said: “With inflation on the rise, COVID-19 support measures, including the Job Retention Scheme, now tailing off, and well-publicised issues affecting global supply chains and availability of labour, it’s perhaps unsurprising that we are starting to see a modest rise in insolvency levels as we enter the final quarter of the year.”
Nationally, the construction and energy sectors saw the largest rise in levels of administrations and receiverships in Q3 2021, with three times as many filings for insolvency in the energy sector (nine appointments) and twice as many filings in the construction sector (34 appointments) compared to the previous quarter.