The number of company insolvencies has increased by 0.4% in the third quarter of 2019, the highest in any quarter since Q1 2014 according to the Insolvency Service.
Compared with the same quarter last year the number of insolvencies increased by 1.6%, and was driven by increases in administrations and creditors’ voluntary liquidations.
Additionally, administrations increased by 20% in the last quarter to reach the highest level since Q1 2014.
Graham Bushby, head of restructuring at RSM, said: “Administrations have been increasing slowly over the last few quarters, but these jumped by 20 per cent in Q3 versus the last quarter to reach their highest level for more than five years.
“This suggests that company distress levels are now accelerating. Clearly, continued uncertainty around Brexit is affecting consumer confidence and business sentiment.”
In Q2 2019, 71.5% of all company insolvencies were CVLs, 15.3% were compulsory liquidations and 13.2% were other types of company insolvency.