The number of company insolvencies in July was higher than any month during the Covid pandemic, according to the latest figures from the Insolvency Service. After seasonal adjustment, the number of registered company insolvencies in England and Wales in July 2024 was 2,191. That was 16% higher than the same month in the previous year (1,890 in July 2023).
The number of company insolvencies remained much higher than those seen both during the Covid pandemic and between 2014 and 2019. Company insolvencies in July 2024 consisted of 320 compulsory liquidations, the highest monthly number since before Covid, 1,691 creditors’ voluntary liquidations (CVLs), 155 administrations and 25 company voluntary arrangements (CVAs). All types of company insolvency were higher than in July 2023.
One in 177 companies on the Companies House effective register (at a rate of 56.6 per 10,000 companies) entered insolvency between 1 August 2023 and 31 July 2024. This was an increase from the rate of 54.7 per 10,000 companies that entered insolvency in the 12 months ending 31 July 2023. These rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.
While the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. However, this is mainly because the number of companies on the effective register has more than doubled over this period.
If you would like more information about the issues raised in this article or any aspect of credit control, debt collection or insolvency, please contact a member of our team on 020 8290 7400 or email info@jpcreditsolutions.co.uk
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