Corporate insolvencies increase by 81%


Corporate insolvencies have increased by 81% compared with the same period last year.

The latest insolvency statistics published by the Insolvency Service reveal that corporate insolvencies rose sharply in England & Wales in the second quarter of this year, coinciding with the withdrawal of Government-backed financial support and the cessation of the majority of covid related restrictions on creditor action.  The sharpest rise was in creditors’ voluntary liquidations (a process instigated by the directors) as opposed to compulsory liquidations (a process most frequently instigated by creditors taking action through the Courts) which, by comparison, saw only a modest rise.

Whilst the withdrawal of Covid-support has undoubtedly played a part, other factors such as staff and supply shortages (exacerbated in certain sectors by Brexit), rising manufacturing, raw material, energy and transport costs and a decline in demand have created a ‘perfect storm’ and all contributed to the rise in the number of business failures.

Commentary – Company Insolvency Statistics April to June 2022 – GOV.UK

If you or your business is encountering financial difficulties or you are a supplier with unpaid customer invoices, early action is often key to securing the most positive outcome available and limiting any potential claims or exposure to personal liability.  If you require advice in relation to any aspect of corporate or personal insolvency, please contact John Bradshaw or Sarah Mower in our Insolvency & Business Recovery Team.

John Bradshaw is a partner and specialist in Insolvency & Business Recovery at Barker Gotelee Solicitors.

Suffolk Insolvency Solicitors – for more information on our range of legal services, please call the team on 01473 611211 or email bg@barkergotelee.co.uk