2019 saw the high street landscape change dramatically, with the closure of many well-known names and brands. For many, this is how they see the impact of insolvency on a day-to-day basis.
However, the high street was not the only place where a rise in insolvencies was witnessed. The Insolvency Services statistical analysis reported:
“There were 4,355 total company insolvencies in Q3 2019; this is 0.4% higher than in Q2 2019 and has increased for the third successive quarter. Compared to the same quarter last year, this was an increase of 1.6%. This is the highest underlying level of company insolvencies in any quarter since Q1 2014”
It also reported:
“Administration increased by 20.0% in the last quarter to reach their highest level since Q1 2014”.
The full report can be found here.
It is likely that the fallout from “Brexit” uncertainty could once again cause an increase in insolvencies.
Predictions for sector specific insolvencies currently forecast construction to continue to suffer along with the leisure industry, specifically hotels and restaurants.
According to research by Atradius, “corporate insolvencies are set to rise globally for the first time in a decade, with the biggest increase seen in the UK”. Atradius “predicts a further 5 per cent increase in the UK’s rate of insolvency for 2020”.
For more information, visit The Gazette.
Forward planning and advice are therefore key to ensuring a prosperous 2020 and if you are considering your options, it’s always worth taking some advice from My Insolvency.
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