Nearly 2,000 companies in England and Wales collapsed last month in the face of a weakening economy, and soaring inflation.
There were 1,948 company insolvencies across England and Wales last month, the Insolvency Service has reported today, up from September’s total of 1,684.
That’s 38% more than in October 2021, when there were restrictions on winding up companies during the pandemic, and also 32% higher than in 2019.
It shows that companies in England and Wales face a “worsening situation”, says Jeremy Whiteson, restructuring and insolvency partner at city law firm Fladgate:
“It would be unsurprising if the situation was worsening for businesses and this was not merely a blip.
“High fuel prices, inflation, labour shortages, post-Brexit difficulties with international shipping, uncertainty in capital markets, raising interest rates and geo-political uncertainty all pose difficulties for businesses.
“Anecdotal evidence suggests that there are a growing number of businesses in financial distress – although many are not yet reaching for formal insolvency procedures.”