Close Menu
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Voluntary Liquidation Rates Fall But Pressures Mount on Company Directors

By Jon Munnery
25 July 2022

Rates of Creditors’ Voluntary Liquidations (CVLs) fell during June in England and Wales but pressures are nonetheless mounting on company directors.

According to official figures from the Insolvency Service, there were a total of 1,691 cases of liquidation in June, with most of those being instances in which directors took their businesses into liquidation voluntarily.

Those numbers represent a drop compared to CVL rates for May but there is no doubt that businesses across the UK economy are significant under pressure at present.

High on the list of concerns for most company directors is inflation, with price rises squeezing the cashflows of operators across industries and pushing some towards insolvency and potential liquidation.

Despite liquidation rates having fallen from May to June this year, the insolvency and restructuring trade body R3 has warned company directors not to be complacent given the scale of challenges they’re likely to face in the coming months.

Nicky Fisher, R3 vice president, has said: “Despite these positive statistics, inflation continues to have an impact on all aspects of business with input costs and overheads heading in the wrong direction.

“Not only are directors facing immediate strain to deal with this inflationary pressure but they will also be looking at re-evaluating investment decisions and wider business strategies in the medium-term. This is likely to act as a further drag on the economy in the months ahead.”

Ms Fisher went on to point out that consumer confidence has slumped in recent months which has restrained consumer spending and added to the financial pressures being felt particularly by operators within the retail, travel and hospitality sectors.

The trade body UKHospitality recently reported that inflation is having a huge impact on the finances of businesses across its industry and leaving a growing number of those operators fighting for survival.

Nicky Fisher from R3 has emphasised specifically that anyone concerned about their own or their company’s financial situation should reach out for expert advice as soon as they need it.

“Talking about your money worries can be a challenging conversation to have but seeking early advice gives you more potential options and more time to make a decision about what’s best for you,” she said in response to the latest official figures on CVLs across England and Wales.

Jonathan Munnery
Insolvency & Restructuring Expert
Is Liquidation the best option for you?

By completing the test, you will receive:

Your Liabilities & Assets
Types of Liquidation Available
Your Companies Health Risk
Alternatives to Consider
Related Articles
22/06/2022
CVL Rates Fall but Remain Way Up on Last Year
Rates at which companies entered Creditors’ Voluntary Liquidation (CVL) fell during May compared to April but CVL levels remain way up on the same month last year.
Read more
06/06/2022
Family Firm Heads into Liquidation After 150 Years of Trading
A family-run business and seller of high-end cookware has entered liquidation after more than 150 years of trading in West Yorkshire.
Read more
03/05/2022
Wave of Company Insolvencies Forecast for This Year
A wave of corporate insolvencies has been forecast for the UK in the coming months unless swift action can be taken by the government to avoid that scenario.
Read more
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout
Logo Tma
Logo Business Recovery
Logo Cse
Logo Iip

Looking for immediate support?

Complete the below to get in touch

 
 
 
 
 
100% Free & Confidential Advice

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY