In October 2023, the UK witnessed an 18% increase in company insolvencies compared to the same period last year, reaching a total of 2,315 cases.
The breakdown includes 256 compulsory liquidations, 1,889 creditors' voluntary liquidations (CVLs), 146 administrations, 23 company voluntary arrangements (CVAs), and one receivership appointment.
Conversely, individual insolvencies decreased by 6% in the year to October, totalling 9,881 cases. This included 703 bankruptcies, 3,245 debt relief orders (DROs), and 5,933 individual voluntary arrangements (IVAs). IVAs were 27% lower than last year, while DROs increased by 71%.
Nicky Fisher, president of R3, the UK's insolvency and restructuring trade body, said:
"Firms have been battling economic issues for three and a half years now, and corporate insolvency numbers are rising as more and more directors run out of options.
"Businesses are being battered from all sides. Costs have increased, demands for wages are incoming and people are spending less as they look to save ahead of the winter and to make sure they have enough left to cover the basics.
"We urge anyone who is worried about their finances - whether those are personal or business - to seek advice as soon as possible. We know it's a very hard conversation to have, but voicing your concerns while they are new will give you more options and more time to take a decision about your next step."
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