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For the first time since the start of the coronavirus pandemic the monthly number of registered company insolvencies in England and Wales was higher than pre-pandemic levels, according to the monthly insolvency statistics published by The Insolvency Service for the month of November 2021.
It revealed registered company insolvencies in November 2021 were 88% higher than the number registered in the same month in the previous year and 11% higher than the number registered two years previously.
The service said these numbers are “driven” by the increasing number of creditors’ voluntary liquidations (CVLs).
Other types of company liquidations in England and Wales remained lower than before the pandemic but this is likely to have been due to “extensive” government support that protected against redundancies, landlord action and cash flow problems.
It added organisations that rely “heavily” on people are also struggling to operate as normal given high levels of staff absences and self-isolation. In addition, outside of covid, businesses are “still struggling” with inflationary cost hikes, interest rate increases and international supply chain issues.
According to the firm, businesses face a “bleak” start to the new year and should now be contingency planning, prioritising cash flow management and speaking to stakeholders to manage expectations and raise additional funding where required.
