Corporate Insolvencies Surge by 18% in First Quarter
24/05/2023

According to the Insolvency Service, corporate insolvencies rose by 18% in Q1 compared to the previous year. With 5,747 insolvencies in England and Wales, it marked the highest level since mid-2009. The increase was driven by a surge in creditors' voluntary liquidations (CVLs). Various sectors, including construction, wholesale and retail, and accommodation and food services, faced the highest number of insolvencies. Compulsory liquidations also saw a significant uptick, indicating a challenging operating environment for businesses. Experts attribute these trends to reduced government support, high inflation, rising interest rates, and the end of the Energy Bill Relief Scheme. Directors are advised to seek early advice to protect their businesses. Individual insolvencies, including bankruptcies, also rose, with creditor petitions becoming more prevalent. These trends highlight ongoing economic challenges and the need for careful financial planning.