Company insolvencies highest since Q2 2009 - Evelyn Partners
New data published on Friday (July 28) by The Insolvency Service show that between 1 April and 30 June 2023 (Q2 2023), there were 6,342 seasonally adjusted registered company insolvencies.
After seasonal adjustment, the number of company insolvencies in Q2 2023 was the highest since Q2 2009, nine per cent higher than in Q1 2023 and 13per cent higher than in Q2 2022.
Nigel Fox, Bristol-based director in the restructuring & recovery services team at Evelyn Partners, the wealth management and professional services group, said: “The number of company insolvencies was particularly influenced by creditors’ voluntary liquidations (CVLs), with 5,240 recorded in Q2 2023 which was a seven per cent increase over Q2 2022. The Insolvency Service commented that the number of CVLs was the highest quarterly level since the start of the series in 1960.
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“The quarterly statistics are a very useful guide as to the current state of the market, but it should be noted that the number of CVLs were lower in April 2023 when compared to April 2022, but were then much higher in the following two months when compared to the previous year.
"This is perhaps a reflection of the continued rises in interest rates and persistent high inflation during the quarter, reducing the hope that these factors might be only very short-term problems.
“In the continuing difficult climate, it is going to be more important than ever for directors to get help as early as possible to increase the likelihood of a rescue before it is too late.
For any directors who are worried about the financial position of their business, we recommend seeking professional advice as early as possible. The earlier that advice is sought then the greater number of options there will be for the business.”
