Highest quarterly number of CVLs seen since records began
The latest insolvency statistics for England and Wales have revealed the highest quarterly number of Creditors’ Voluntary Liquidations (CVLs) since the start of the time series in 1960, and a 14% increase in business failures in 2023 compared to 2022r.
Oliver Collinge, director at restructuring and insolvency firm, PKF GM, says that government support provided during the pandemic is now far behind us and high inflation and interest rates have created a tough environment for many businesses.
“Predictions of a tsunami of insolvencies are quickly becoming a reality among smaller businesses where CVLs are more typically used. There is no doubt that higher interest rates and continuing cost pressures have seriously impacted many UK businesses, with one in 186 active companies entering insolvent liquidation in 2023 – the highest rate seen since Q3 2014. We are certainly seeing an uptick not just in smaller companies but also in larger businesses seeking our support and there could be more painful news on the horizon.”
“An insolvency process is a serious and stressful step to contemplate. But if you take advice early, your range of options will be much greater, as will the chances of rescuing your business. If you are worried about your business and its ability to operate in the current economic climate: seek advice.”