Latest figures from the Insolvency Services show a significant increase in company insolvencies.
There were 2,177 company insolvencies in April 2024 - 18% higher than in March 2024 and 18% higher than the number in April 2023.
The business insolvencies comprised of 300 compulsory liquidations, 1,715 creditors’ voluntary liquidations (CVLs), 144 administrations and 18 company voluntary arrangements (CVAs).
CVLs accounted for 79% of all company insolvencies. The number of CVLs increased by 18% from March 2024 and was 17% higher than during the same month last year (April 2023), after seasonal adjustment.
2023 saw the highest annual number of CVLs since the start of the time series in 1960, continuing the year-on-year increases in CVL numbers seen since 2021.
The number of seasonally adjusted compulsory liquidations was 11% higher than in March 2024 and 21% higher than in April 2023. The number of compulsory liquidations in 2023 increased by 44% from 2022, but remained 4% lower than 2019 (pre-pandemic levels). Numbers have increased from record low levels seen in 2020 and 2021 while restrictions applied to the use of statutory demands and certain winding-up petitions (leading to compulsory liquidations).
The number of administrations was 36% higher than in March 2024 and 25% higher than in April 2023, after seasonal adjustment.
The number of CVAs was 50% higher in April 2024 than April 2023 and twice as many as in March 2024. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.
The five industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in the 12 months to March 2024 were: Construction (4,274, 17% of cases with industry captured), second was wholesale and retail trade; repair of motor vehicles and motorcycles (3,825, 16% of cases with industry captured). Accommodation and food service activities (3,766, 15% of cases with industry captured). Fourth was Administrative and support service activities (2,312, 9% of cases with industry captured), In fifth place was Professional, scientific and technical activities (1,979, 8% of cases with industry captured).