Company insolvencies in England and Wales have hit their highest quarterly levels since 2009, according to the Office for National Statistics (ONS).
The total number of insolvencies in Q2 2022 was 5,629. However, this is still significantly lower than the 6,943 insolvencies recorded during the 2009 global financial crisis.
During Q2 2022, 22% of businesses said that high energy prices were their main concern, up from 15% in February. Smaller firms with 10 to 49 employees were hit hardest by the energy crisis, with 30% citing it as their biggest threat.
More than one in ten businesses reported a moderate-to-severe risk of insolvency in August.
The ONS reported that creditors' voluntary liquidations (CVLs) drove the rise in company insolvencies, accounting for 89% between Q1 and Q2 2022.
Reporting on likely causes of the increase in insolvency levels, the ONS said:
"Several factors are likely to have played a role in the recent rise in insolvencies, such as persistently high energy prices, difficulties in meeting debt obligations, rising costs of raw materials, and supply chain disruptions.
"It is also possible that the growth observed since 2021 represents a level of natural adjustment in trends following the dip observed in 2020."
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