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Corporate insolvencies increase by more than 60% in two years

January 3rd 2024
 

The number of corporate insolvencies has increased by more than 60% over the last two years, according to the latest figures from the Insolvency Service.

Carly Davies, our Debt Control Manager provides an update.

They increased by 17.6% in October 2023 to a total of 2,315 compared to September’s total of 1,969, and increased by 18.5% compared to October 2022’s figure of 1,954.

The increase was 64.2% from October 2021’s total of 1,410 and a rise of 56.7% from pre-pandemic levels in October 2019 (1,477).

The figures reflect the turmoil surrounding businesses being buffeted on several different fronts.

Nicky Fisher, President of R3, the UK’s insolvency and restructuring trade body, said: “Firms have been battling economic issues for three and a half years now, and corporate insolvency numbers are rising as more and more directors run out of options.

“Businesses are being battered from all sides. Costs have increased, demands for wages are incoming and people are spending less as they look to save ahead of the winter and to make sure they have enough left to cover the basics.

“If the Christmas trading period doesn’t bring a wave of new income, we could see insolvencies continue to rise in the new year, and at the moment, it’s impossible to predict whether this will be a badly needed boost or the final blow for struggling firms.

If you would like help with debt collection and credit control please contact Carly on 01228 516666 or click here to send her an email.

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