The number of company insolvencies are on the rise, increasing by 17% from the previous quarter and also rising by 43% from Q3 in 2020. The number of Creditors’ Voluntary Liquidations is at its highest quarterly level since 2009, however, other company insolvency procedures seem to remain at the same or similar level since the last quarter.
Between 1 October 2020and 30 September 2021, one in 341 active companies entered liquidation at a rate of 29.3 per 10,000 active companies. This is a decrease from the period ending September 2020 where 32.4 per 10,000 active companies entered liquidation.
The sectors with the highest number of insolvencies in the 12 months ending Q3 2021 were as follows:
- Construction – 2,133 insolvencies, 17% of cases with industry captured
- Accommodation and food services – 1,577 insolvencies, 13% of cases with industry capture
- Wholesale and retail trade and repair of vehicles (1,478 insolvencies)
Accountants and other professionals are often the last supplier to get paid when working for their clients. If the upward trend in corporate insolvency numbers does continue then our top tip is to regularly review the work you are doing for your clients to ensure that you get paid!!
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or should you or your company be facing financial difficulties and you need to chat, please telephone Charlotte Hutchinson on 01377 257788 and she will make you an appointment with one of our insolvency professionals at our Driffield, Hull, Grimsby, Scunthorpe or York offices. Our initial meetings are free and without obligation. Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.
Because we are an independent insolvency practice, we keep our overheads low and have put systems in place to deal with simple liquidations at an affordable price of from £1,995 + VAT + Disbursements. Our MVLs are from £995 + VAT + Disbursements.