The number of registered company insolvencies in October was 2,315, which is 18% higher for the same period last year.
This was higher than levels seen compared to the Covid lockdowns as there was government support measures in place at the time.
Data shows the breakdown of company insolvencies consisted of 256 compulsory liquidations, 1,889 creditors’ voluntary liquidations (CVLs), 146 administrations, 23 company voluntary arrangements (CVAs) and one receivership appointment.
Numbers of compulsory liquidations, CVLs, CVAs and administrations were all higher than in October last year.
The increase in company insolvencies was mainly driven by CVLs, while compulsory liquidation and administration numbers increased from historically low numbers seen during and immediately after the pandemic.
John Lamerton, small business author at Big Ideas for Small Businesses said, “Small businesses are dying, and it’s not hard to see why: rising costs, a tough economy and taxes that are higher than ever before.
“Small firms are dropping like flies, and if we’re not careful, we’ll lose our reputation as a once-famous nation of shopkeepers.”
Alistair Hoyne, chief executive officer at Finanze said, “Company debt is rising and the ability to service it has decreased. Businesses and their owners are still reeling from the impact of Covid.
“The ‘cheap’ extra money pumped in by the Government to keep firms afloat through schemes such as Bounce Back Loans must now feel like a deadweight to many business owners, slowly dragging them under.
“Sole Traders and SMEs have been hard hit and the additional economic pain caused by the cost of living crisis and the War in Ukraine just seems to be never-ending.
“The figures suggest more people are taking whatever steps they can to get debt help, but for many, it’s simply too late. The debt industry is booming on the back of this misery.”