Corporate Insolvencies at highest level since 2014

The Insolvency Service has now made available the latest corporate insolvency statistics for England and Wales for Quarter 4 2018 (October to December 2018) which shows that the number of corporate insolvencies – the number of companies going into insolvency – has gone up in 2018 to 16,090, which is the highest level since 2014.

Commenting on the numbers, Stuart Frith, President of insolvency and restructuring trade body R3, said

“After three years of relatively flat numbers, 2018 saw insolvencies creep back up to levels last seen in 2014. The pressure point for businesses most frequently cited by our members is weak consumer demand.”

Louise Brittain, Partner and Head of Contentious Insolvency at Wilkins Kennedy also commenting on the released figures said

“It is very worrying that the number of company insolvencies is at its highest level since 2010. More creditors are forcing companies into liquidation by quite a sizeable amount which means less directors are taking a financial hit.”

“However the rise in Administration shows that directors are trying to take pre-emptive action to sell their business but clearly when that isn’t possible they are waiting for creditors to take action.”

Richard Ludlow, Partner at Rix & Kay who leads the firm’s Restructuring and Insolvency Team commented,

“The key advice that we can give based on our experience in dealing with companies that are struggling financially and being chased by people, to whom the company owes money, is that you seek professional advice as a matter of the greatest urgency not only to try and save the company from potential insolvency but also to ensure that you comply with your duties as a director to the company and its creditors.”

“We have a huge amount experience, in both our corporate and dispute resolution teams, in dealing with directors and companies that are struggling financially through no fault of the decisions which they have made but simply because of unfavourable market conditions.”
“By using that experience we can provide immediate, relevant and practical advice and assistance as well as being able to put directors in touch with a number of local accountants and restructuring experts who will be able to provide you with constructive and tailored advice to allow you to hopefully turn your business around.”

For more information or an informal chat about how Rix & Kay might be able to support you email richardludlow@rixandkay.co.uk