Company insolvencies in England and Wales fell by nearly a third (31.8%) in the month to April 2023, according to the latest figures from the Insolvency Service.
In total, 1,685 companies were registered as insolvent last month, including 1,368 creditors' voluntary liquidations (CVLs), 183 compulsory liquidations and 12 company voluntary arrangements.
Company insolvencies were also 15% lower compared to the same period last year, as CVLs fell by 23% in the year to April, and compulsory liquidations almost halved.
However, despite April's fall in corporate insolvencies, numbers are still higher compared to previous years. April 2019 saw 1,426 corporate insolvencies, while only 925 companies became insolvent in April 2021.
Nicky Fisher, president of insolvency trade body R3, urged directors to take action to protect their firms' financial health. She continued:
"The business climate is still tough. Firms right across the supply chain are trying to manage increased costs without passing this on to their customers, and with inflation remaining sticky, this is likely to become ever more challenging as the year progresses."
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