The number of companies in England and Wales choosing to be liquidated has risen to its highest in over two and half years, according to the Guardian.
HMRC reports that there were 1,328 Creditors’ Voluntary Liquidations (CVLs) in September, filed by companies who couldn’t repay their debts.
That’s the highest level since January 2019 — up from 1,256 CVLs in August.
HMRC says: “The number of registered company insolvencies was similar to pre-pandemic levels, driven by this higher number of CVLs, although other types of company insolvencies, such as compulsory liquidations, remained lower.”
John Bell, senior partner at Clarke Bell Insolvency Practitioners in Manchester, said: “As we head towards the Budget it is interesting to see that the number of company insolvency procedures have increased again – with the number of Creditors’ Voluntary Liquidations at the highest level since January 2019. I wonder if this will influence any of the government’s plans.
“Business owners have been hit by a range of additional problems recently – including the end of furlough and the temporary restrictions relating to winding-up petitions and statutory demands. I think we are going to see the number of company liquidations increase in the coming months, as the burdens on some companies just become unbearable.
“March 2022 sees the end of the ban on landlords evicting firms for unpaid commercial rent, which I think is really going to shake things up for a lot of companies. Many businesses will be relying on a profitable Christmas period to enable them to pay all the historic debt they have built up – including all their rent arrears. However, I’m not confident that this is going to be a bountiful Christmas for everyone.”