Company insolvencies in 2023 highest in 15 years
The Insolvency Service released statistics for the month of December 2023 yesterday.
They revealed that the number of company insolvencies in December was 2,002, which was 2% higher than December 2022.
This is marginally lower than those recorded in November 2023, but with the festive period in full swing it is typical for December figures to be lower than November.
Of the 2,002 company insolvencies, 1,731 Creditors Voluntary Liquidations (CVLs) with i53 Compulsory Liquidations, 103 Administrations and 15 Company Voluntary Arrangements (CVAs).
The total number of company insolvencies for 2023 exceed 25,000 for the first time in 15 years which is not surprising bearing in mind the tough economic climate businesses are facing.
It is not a surprise that company insolvencies remain high and the figures clearly demonstrate that many businesses across all sectors are struggling.
Falling inflation is raising hopes that interest rates might be reduced, although most economists and financial forecasters are not predicting cuts until mid-year.
Against the continuing backdrop of economic uncertainty, low growth and high interest rates unfortunately we do expect to continue to see high levels of insolvencies and it could be some time before ‘normal’ monthly levels of insolvencies resume.
The full report from The Insolvency Service can be found here.
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The information was correct at time of publishing but may now be out of date.