If a company is unable to pay its debts, it is deemed insolvent. Whether it is due to a cash flow crisis or a loss of a business contract, data shows insolvencies are on the rise.
Why insolvencies are at an all-time high
Corporate insolvencies in England and Wales have reached their highest level in 30 years. According to the Insolvency Service, the total number of company insolvencies last year was 25,158, the highest number since 1993 and 14 per cent higher than in 2022.
And according to the Centre for Economics and Business Research, this is not set to improve in 2024, as it has forecast more than 8,000 insolvencies per quarter this year.
This all points to many businesses across the UK being on the brink.
Some sectors are mor…
Read the full article at: https://www.ftadviser.com/companies/2024/02/19/corporate-insolvencies-what-should-directors-know/