The insolvency and restructuring profession saves almost 300,000 jobs
A recent survey conducted by R3, the insolvency and restructuring trade body, concluded that in 2019, the insolvency and restructuring profession rescued 297,000 jobs, saved 7,200 companies and returned a combined £1.82bn to creditors in corporate and personal insolvency cases, shining a spotlight on the profession and the influence it has within the UK economy.
Tasked with helping companies capture short-term value and maximise financial solvency by identifying risks and opportunities, the insolvency profession and the wider insolvency and restructuring field is one of the most highly regulated disciplines of professional practice, and also plays a vital role in the tackling of fraud and wrongdoing.
Michael Roome, Partner at Smith Cooper and licensed insolvency practitioner (IP) comments “When quantified like this, it’s clear to see how insolvency and restructuring professionals play a vital role in economic regeneration and stability, underpinning greater levels of trading, lending and investment within the economy.”
“The report published by R3 demonstrates the scale of the economic contribution made by the profession, and highlights the role we play in supporting the wider economy when it comes to resolving financial distress and the spiralling impact that it can have on both companies and individuals.”
“Unfortunately, the nature of the profession often results in resistance, but when it comes to financial difficulty, insolvency and restructuring professionals are here to create resilient and agile companies that are able to weather periods of financial difficulty, and work to stabilise their position.”
“Here at Smith Cooper, we believe prevention is better than cure, and seeking prompt professional advice is one of the best ways to maintain reputation. By seeking advice early on, we find companies and individuals are not only in a better financial position long term but are also able to foster greater levels of confidence amongst creditors and suppliers when it comes to trading and lending.”
“The Covid-19 pandemic adversely impacted companies in many sectors, and whilst the government introduced a range of temporary measures to alleviate the economic impact of the crisis, insolvency rates are expected to rise. As the UK, and indeed the rest of the world beings to take tentative steps towards some semblance of ‘normality’, attention is already turning to business rescue and recovery. At this point I would therefore recommend that companies or individuals experiencing financial difficulty to seek professional help, in order to ensure long term stability.”