Insolvencies reveal true pressures

THE number of monthly corporate insolvencies has increased by over a third, and doubled since the same time last year, highlighting the enormous challenges faced by businesses as they struggle to overcome spiralling inflation and energy costs, as well as the shockwaves of the pandemic.

Latest Government insolvency statistics for England and Wales show that corporate insolvencies increased by 39.4 per cent in March 2022 to a total of 2,114 compared to the previous month’s figure of 1,517, and rose by 111.6 per cent compared to March 2021’s figure of 999.

According to the Midlands branch of insolvency and restructuring trade body R3, the sharp increase in corporate insolvencies suggests that many directors have seen the current economic prospects as an obstacle they will not be able to overcome, and have closed their companies ahead of time.