Business Recovery

January company insolvencies plummets to 752

The decline has been attributed to government measures that have been put in place

The Insolvency Service has reported that the number of registered company insolvencies across England and Wales in January 2021 fell to 752, roughly half of the 1,515 insolvencies seen in January 2020.

The body attributed the repeated low levels of insolvencies since the start of the first lockdown in March 2020 to government measures put in place in response to the Covid-19 pandemic.

The 752 company insolvencies consisted of 613 creditors’ voluntary liquidations (CVLs), 45 compulsory liquidations, 73 administrations, and 21 company voluntary arrangements (CVAs).

Scotland saw a larger fall in the number of company insolvencies, with a year-on-year decline of 63% represented in the 23 January 2021 insolvencies.

As for individual insolvencies, there were 1,167 debt relief orders (DROs) and 818 bankruptcies filed during the period.

Both figures represent a 47% year-on-year decrease, with debtor applications and creditor petitions also falling 43% and 68% respectively.

The body also found that company insolvencies in Northern Ireland plummeted to just three, an 88% decrease when compared to January 2020.

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