Q3 2019 Insolvency Statistics – Response from Diane Hill, Baldwins Insolvency & Restructuring Partner

Commenting on the Q3 2019 (July – September) England & Wales insolvency statistics published last week on the 30th October 2019, Diane Hill, Restructuring & Insolvency Partner from Baldwins says,

“Storm clouds continue to gather; these quarterly figures are further evidence that businesses trading in the current economic climate are facing some of the most difficult conditions for years.”

“The statistics show that the number of companies entering administration has increased by 20% since the last quarter and are their highest level for over 5 years since the first quarter of 2014. Also, underlying corporate insolvencies rose by 0.4% in Q3 2019 compared to Q2 2019, and rose by 1.6% compared to Q3 2018, an increase for the 3rd successive year.”

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“With the news of further failures since the end of September the increased number of administrations looks set to continue into Q4 of 2019. The purpose of administration is to rescue a company as a going concern or if this is not possible, then to achieve a better result for creditors than would be likely if the company were to be wound up.

“These stats show it is a perfect storm of economic uncertainty for businesses, with cash flow difficulties and lack of confident spending by consumers taking its toll across all sectors not just the retail environment.”

“For companies suffering from lack of cash, one of the key factors in surviving these difficult economic times is reconsigning that there is a problem early enough so preventative action can be taken, and a crisis averted. Once a problem has been identified, the best course of action is to seek advice from a qualified professional as soon as possible.”

Fore more information please contact Diane Hill & Nicole Clark from our Restructuring & Insolvency team on 0161 245 1000

To read the full ‘The Insolvency Service Company insolvency statistics, Q3 July to September 2019 report’ please visit https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/842780/Company_Insolvencies_-_Commentary_-_Q3_2019.pdf