Insolvency data reflects tough times
THE number of firms in Wales subject to insolvency related activities has hit a high for the year, according to new research from R3, the insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 76 cases of insolvency-related activity, which includes liquidator appointments, administrator appointments and creditors’ meetings, in Wales in April. This is the highest number this year, and since November 2022 when the total was 84.
Insolvency related activity numbers also rose month-on-month, with April’s level 10.1% higher than in March and a year-on-year increase of 33.3%.
Wales saw the fourth highest yearly rise of all the regions and nations in the UK in April, only behind the north east (109.1% rise), the West Midlands (64.3%) and the south east (59.3%).
Charlotte May, chair of R3 in Wales, said: “The monthly and yearly rises in insolvency-related activity in Wales reflect the challenging trading climate that many businesses are still experiencing post-pandemic.
“The high cost of living is affecting consumer spend, while at the same time the costs of rent, utilities, raw materials and transportation for Welsh businesses have all increased.
“These factors, coupled with pressure to increase staff wages have left many businesses struggling to grow, to pay their bills, or to pay off existing debt.”
Ms May, an associate director for Wales and the south west with insolvency practice Manolete, said: “It’s a really difficult time for businesses, but it’s crucial you seek professional advice as early as possible if you’re struggling financially.”