Company insolvencies increase to highest level since
2013
According to data from the Insolvency Service, during
2019 the total number of company insolvencies in England and Wales rose to its
highest level since 2013.
The figures revealed that the increase was largely driven
by a rise in creditors’ voluntary liquidations. Creditors’ voluntary
liquidations reached their highest annual level since 2009.
Meanwhile, the number of administrations increased in
2019 when compared to 2018. Compulsory liquidations, on the other hand, decreased
in 2019.
The number of individual insolvencies in England and
Wales increased to its highest level since 2010, the data revealed. It found that
the rise was mainly driven by an increase in individual voluntary arrangements,
which reached their highest year on record.
‘These latest figures paint a bleak picture for the
macro economy overall and temper the pre-Christmas optimism caused by the ‘Boris
bounce’,’ said Michael Mulligan, Insolvency and Restructuring Partner at law
firm Shakespeare Martineau.
‘In reality, growth continues to stagnate, and
business and individuals are feeling the effects. There are thousands of zombie
companies hanging on across a number of vulnerable sectors.’