Corporate insolvencies on the rise

What to do if your current solicitor closes down

Recent statistics from the Insolvency Service have revealed a worrying increase in company insolvencies in the third quarter of 2016.

The figures for July to September show that 3,633 businesses became insolvent across the UK. This was a 2 per cent rise on the previous quarter.

The sector hardest hit has been construction, with 2,450 companies failing in quarter three. Other areas affected included wholesale trade and vehicle repairs.

The rise in the insolvencies of construction businesses has led to speculation on the impact of Brexit on the sector. Andrew Tate, the president of the insolvency trade body R3 responded to this by saying that this is not necessarily an indicator of Brexit-related financial problems for UK companies.

He continued to say that while companies dependent on imports are struggling with the falling value of the pound, anecdotal evidence from our members suggests the vote to leave the EU has not led to more insolvency procedures due to factors other than the exchange rate. However, he stated, R3 is hearing that more companies have been coming to restructuring experts for advice. 

Find out more: Insolvency Statistics: July to September 2015