A fall in the number of monthly company insolvencies in England and Wales reflects an improvement in local trading conditions, with a growing quantity of struggling businesses able to be rescued rather than closed down.
This is according to the Midlands branch of insolvency and restructuring body R3 and follows latest monthly statistics published by the Insolvency Service which show that corporate insolvencies decreased by 7.3% in July 2024 to a total of 2,191 compared to the previous month’s total of 2,363.
The drop in monthly company insolvencies follows soaring figures for June, which saw a 15.7% increase compared to the previous month, and a 17.1% rise against June 2023.
R3 Midlands Chair Stephen Rome, a partner at Penningtons Manches Cooper in the region, said: “With the monthly decrease in business insolvencies there has been a rise in administration numbers, which is potentially positive for business rescue prospects.
“Increasing numbers of businesses have been able to take early advice for exploring and activating rescue plans, enabling them to continue to trade rather than be wound up.
“This has been helped by recent improvements in market and economic conditions, driven mainly by a successful summer of sport and more stability for businesses following the General Election.
“Better trading conditions for the retail and hospitality sectors are likely to continue over the summer, while the construction sector could receive a further boost through the government’s planned housing and infrastructure initiatives, although it will take time for them to have an impact.
“Despite the economic improvements, we would urge individuals and businesses facing financial issues to maximise their outcome options and seek advice early, making the most of the free initial consultation most R3 members offer.”
