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The number of registered company insolvencies in August increased by 19% to 2,308 from 1,941 in the same month in 2022, according to The Insolvency Service’s latest statistics.
This was higher than levels seen while the government support measures were in place in response to pandemic, and also higher than pre-pandemic numbers.
There were 221 compulsory liquidations in August 2023, 45% higher than in August 2022.
According to the government service, the numbers of compulsory liquidations have increased from historical lows during the pandemic partly due to an increase in winding-up petitions presented by HMRC.
In August 2023, there were also 13% more CVLs at a total of 1,880 compared with last year, while the number of administrations was also higher than in August 2022.
Colin Hardman, restructuring and recovery partner at Evelyn Partners, said: “Today’s update on monthly company insolvencies illustrates the bleak reality that many businesses are currently facing. Whilst it is hoped that the 0.5% fall in GDP in July was more of a temporary blip caused by the wet weather and strike action, the trading environment is continuing to be extremely challenging for many businesses as they grapple with rising costs.
“We can expect the business environment to continue to be challenging for some time yet and so business owners need to do everything they can to keep their companies trading. Directors should be proactive and take early action where they can see potential difficulties with their businesses.”
He added: “Bringing in the appropriate professional advisers and engaging with all key stakeholders, such as banks, sooner rather than later gives business owners more options and therefore maximises their chances of rescuing their businesses and saving jobs.”
