The number of compulsory company liquidations soared by 66% in the year to January, according to the latest figures from the Insolvency Service. The number of all company insolvencies was 5% higher than the number in January 2023.
Of the 1,769 registered company insolvencies in January 2024:
- there were 1,294 Creditors’ Voluntary Liquidation, which is 6% lower than in January 2023;
- 339 were compulsory liquidations, which is 66% higher than January 2023;
- there were 120 administrations, which is 40% higher than January 2023;
- 16 were CVAs, which is 14% higher than in January 2023.
Nicky Fisher, President of R3, the UK’s insolvency and restructuring trade body, said: “January 2024 saw the highest corporate insolvency figures for the month of January in four years. Both compulsory liquidation and Creditors’ Voluntary Liquidation (CVL) levels were higher than in January 2019, which suggests that both creditor pressure and director fatigue are still above pre-pandemic levels.
“Creditors are clearly proactively pursuing the debts they are owed as we go into the final quarter of the financial year, and they look to balance their own books and pay their own debts.
“January was the sting in the tail of a hard year for businesses. The post-Christmas boost many were hoping for didn’t happen as people remained conscious of the costs of food, fuel, and energy, and held back on spending on anything that wasn’t essential, while running costs for businesses remained high and margins remained thin.
“As a result, many firms who were struggling missed out on the lifeline or windfall they were hoping for from the Christmas trading period, and if the business climate doesn’t improve and the recession takes root, we may see corporate insolvency numbers increase further in future.”
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