UK company insolvencies spike as economy falters
By Abigail Townsend
Date: Tuesday 15 Nov 2022
(Sharecast News) - The number of insolvencies in the UK spiked last month, official figures showed on Tuesday, as the economic downturn took its toll.
According to the government's Insolvency Service, the number of registered company insolvencies was 1,948 last month, a 38% jump on October 2021, and 32% higher than before the pandemic, in October 2019.
It was also a significant jump on September, when 1,694 insolvencies were recorded.
Of October's total, there were 242 compulsory liquidations, more than four times as many as in October 2021, and 1,594 creditors' voluntary liquidations.
The Insolvency Service said there had been a large number of petitions from a single, unnamed bank in October, resulting in 45 compulsory liquidations.
Nicky Fisher, vice president of the R3 Association of Business Recovery Professionals, said: "A series of economic issues, the end of the temporary insolvency legislation and a lack of post-Covid bounce have hit all parts of the economy and the supply chain hard and have resulted in more directors choosing to close their businesses and more creditors calling in debts.
"The current outlook is tough for many businesses, as cost rise and consumer confidence remains low."
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