Business insolvencies highest in almost three years
According to monthly research from the government’s Insolvency Service, corporate insolvencies are now at their highest level in almost three years.
The number of insolvent businesses in England and Wales rose by 87.9% to 1,674, compared to November 2020’s figure of 891. In addition, figures increased by 18.7% from October 2021, with a total of 1,410.
The Midlands branch of insolvency ad restructuring body R3, says these statistics show company directors are choosing to close their businesses because they feel survival is impossible in the current economic climate.
R3 Midlands Chair Eddie Williams, a partner at PwC in Birmingham, said: “The monthly increase in corporate insolvencies has been driven by a rise in Creditor Voluntary Liquidations (CVLs) to the highest number in more than two-and-a-half years.
“This suggests that a growing number of directors have been unable to combat the economic and financial obstacles thrust upon them by the pandemic and have closed their companies down.
“Times continue to be tough for local businesses, not least over the last few weeks, as they have been hit by the triple whammy of increased costs, supply chain issues and rising COVID cases.
“We urge any director who is worried about their company to take professional advice as soon as possible. Seeking it at an early, rather than later, provides more solutions, more time and, potentially, better outcomes.”
