Corporate insolvencies are now at their highest level in almost three years, according to monthly research from the government’s Insolvency Service.
The number of insolvent businesses in England and Wales rose by 18.7% last month to a total of 1,674 compared to October’s total of 1,410, and increased by 87.9% compared to November 2020’s figure of 891.
According to the Midlands branch of insolvency and restructuring body R3, these statistics indicate the growing number of company directors choosing to close their businesses because they feel that survival is impossible in the current climate.
R3 Midlands Chair Eddie Williams, a partner at PwC in the East Midlands, said: “The monthly increase in corporate insolvencies has been driven by a rise in Creditor Voluntary Liquidations (CVLs) to the highest number in more than two-and-a-half years.
“This suggests that a growing number of directors have been unable to combat the economic and financial obstacles thrust upon them by the pandemic and have closed their companies down.
“Times continue to be tough for local businesses, not least over the last few weeks, as they have been hit by the triple whammy of increased costs, supply chain issues and rising COVID cases.
“We urge any director who is worried about their company to take professional advice as soon as possible. Seeking it at an early, rather than later, stage provides more solutions, more time and, potentially, better outcomes.”
