Q2 insolvency stats reveal the cliff edge of company insolvencies

“The continued rise in insolvencies, and CVLs in particular, clearly demonstrates that the predicted ‘cliff edge’ of company insolvencies coming out of the pandemic is coming to fruition. CVL numbers have risen by 74% since Q2 2021, with the highest numbers seen since records began in 1960. It is no coincidence that as government support measures such as the furlough scheme and the suspension of wrongful trading liability have been removed, businesses are now facing the reality of their financial situation post-pandemic.

“The cost of living crisis, rising fuel costs, recruitment issues and ongoing staff absences due to Covid-19 are likely accelerating the rate at which companies are seeking to appoint liquidators. Notably, the number of administrations has also increased by 95% in the last 12 months (since Q2 2021) which suggests that there is still an appetite for business rescue and the financial difficulties faced by businesses may not always be fatal.”

Lucy Trott, Insolvency Expert at Stevens & Bolton