The number of company insolvencies rose 17 per cent year-on-year to 1,783 in February, as experts warn that business owners have reached “the end of the line” after years of challenges.
According to the Office for National Statistics’ latest monthly insolvency statistics, the figure is 33 per cent higher than the number registered three years previously before the pandemic (1,345 in February 2020).
“Rescue procedures (administrations and CVAs) are still lower than they were before the pandemic, whereas voluntary liquidations continue to significantly exceed numbers from pre-pandemic times, likely as a result of business owners reaching the end of the line, after years of difficult trading conditions,” said Mark Supperstone, managing partner at ReSolve.
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“The construction, wholesale and retail trade, accommodation and food services sectors are still seeing the highest numbers of insolvencies, which aligns with what we are seeing at ReSolve in terms of incoming inquiries.”
Read more: SME owners turn to personal loans amid funding crisis
The latest official insolvency figures come as a new report from alternative lender ThinCats predicted that more small businesses are likely to become insolvent in 2023 due to economic challenges and the end of government support.
However, it said it “expected current high demand for funding to continue in support of businesses seeking to grow organically or through acquisition”.
Read more: Insolvency Service cracks down on Covid loan fraud
