Interpath Advisory: Thames Valley insolvencies are beginning to rise
The number of Thames Valley insolvencies rose by 70% in the third quarter of 2021, as inflation and supply-chain pressures started to bite and government Covid-19 support measures began to unwind.
Analysis of notices in The Gazette by Interpath Advisory reveals that a total of 17 companies fell into administration or receivership from July to September 2021 – up from 10 in Q2 2021, though down from the 25 seen during the same period last year.
This mirrors the national picture, which saw UK administrations and receiverships increase by 26% in the third quarter of 2021 - from 123 in Q2 2021 to 155 in Q3, albeit this was significantly down from the 243 appointments during the comparative period in 2020, and still at only 39% of pre-Covid levels when compared to the 401 appointments in Q3 2019.
Sarah Collins, Managing Director and Head of the Thames Valley team at Interpath Advisory, said:
“With inflation on the rise, Covid-19 support measures, including the Job Retention Scheme, now tailing off, and well-publicised issues affecting global supply chains and availability of labour, it’s perhaps unsurprising that we are starting to see a modest rise in insolvency levels as we enter the final quarter of the year.”
Sarah Collins concluded: “Against a backdrop of rising inflation costs and lessening government support, there are signs that the level of insolvencies across the Thames Valley is beginning to rise. We are yet to see the deluge of corporate failures that many anticipated but, whilst the outlook remains uncertain, I would expect to see filings continue to escalate, with more momemtum gathering into the New Year.”
