Latest figures from the Insolvency Service indicate that England and Wales recorded the second-highest number of company insolvencies since 2009 last month.
The number of registered company insolvencies in England and Wales reached 2,361 in June 2024, marking a 16% increase from May 2024's total of 2,040 and a 17% rise from June 2023, which saw 2,016 insolvencies.
Construction, hospitality and retail were amongst the hardest hit sectors.
The high insolvency levels indicate a tougher stance towards businesses' overdue debts from tax authorities, local government and suppliers. June is also a month when quarterly rent payments are commonly due.
Mark Goodwin, Founder and Managing Director at Optimise, said: “The Insolvency Service’s latest figures show just how challenging the trading environment is for many businesses.
"Within this large number of insolvencies, there are numerous legitimate legal claims against fraudulent directors that might not be pursued due to lack of funds. Optimise is here to bridge this gap, ensuring that insolvency practitioners and creditor estates receive maximum returns. By providing the necessary funding, we help ensure that justice is served and creditors are fairly compensated."
Tom Russell, Vice President of R3, the UK’s insolvency and restructuring trade body, said: “The monthly and yearly increase in corporate insolvencies is driven by an increase in Creditors’ Voluntary Liquidations – a process usually used by smaller businesses, and which is often driven by cashflow problems or difficulties with access to finance. Compulsory liquidation numbers have also risen to their second-highest level since January 2021 and suggests that creditors are taking a much tougher stance this financial year.”