Company insolvencies in England and Wales jumped by 40% year-on-year over the past quarter as firms faced rocketing costs, higher interest rates and labour shortages. Official data from the Insolvency Service showed there were 5,595 registered company insolvencies over the three months to September 30.
It was marginally lower than the previous quarter but reflected a 40% jump against the same quarter of 2021. The Insolvency Service said the figures comprised of 4,800 creditors’ voluntary liquidations (CVLs), 492 compulsory liquidations, 274 administrations and 29 company voluntary arrangements (CVAs).
Compulsory liquidations bounced to their highest levels since the start of the Covid-19 pandemic. Experts warned that the number of companies entering insolvency processes could worsen in the coming months as inflation continues to bite.
