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Company insolvencies are on the rise in England and Wales, according to analysis of the new insolvency data by the corporate recovery team at Xeinadin Group.
June registered 2,163 company insolvencies, up 27% on June 2022. Overall, in Q2 there were 6,403 insolvencies, up 7% on the previous quarter and up 16% on the corresponding quarter last year.
The data marks a quarter-on-quarter increase in eight out of the last nine quarterly periods. Over the last year, there have been 23,770 company insolvencies, a 24% increase on the previous 12-month period.
Last month creditors’ voluntary liquidations were up 21% compared to June 2022. There were 260 compulsory liquidations, up 77% on the corresponding month last year, 130 administrations, and 14 company voluntary arrangements.
Xeinadin said the figures demonstrate the significant pressure businesses are under from a wide range of factors, including rising interest rates and inflation among others.
Allan Fallows, director of Xeinadin corporate recovery, said: “The continuing increase in company insolvencies demonstrates the pressure cooker many businesses are in as a result of a perfect storm of rising interest rates, inflation across many key business costs from energy to labour, repayment deadlines for Covid-related loans, and more aggressive pursuit from HMRC.
“Any business that faces a combination of these factors will be under significant pressure, and with further economic pain expected, there doesn’t look to be much respite for struggling businesses in the near future. We’re seeing a lot of companies looking to restructure their debt and we expect to see this trend continuing.”
