Close Menu
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

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

Wave of Corporate Insolvencies Forecast for Autumn

By Jon Munnery
13 August 2020

The UK is set to suffer a wave of corporate insolvencies in the coming months as the government winds down its business support schemes and the true impact of coronavirus on the economy is revealed.

That’s the view of Julie Palmer from the insolvency experts of Begbies Traynor, who feels that companies in serious financial difficulty will increasingly be forced out of business in the second half of 2020.

Many businesses have essentially been “clinging on to survival” since the virus pandemic hit, she says, but will simply become “unviable” once government support mechanisms are wound down.

Ms Palmer’s comments came in response to research by Begbies Traynor that shows around 33,000 companies across the country having entered a position of ‘significant financial distress’ since the beginning of 2020.

This year has been an exceptionally tough one for a great many businesses in the UK but increases in financial distress represent the continuation of a trend that was already ongoing prior to the coronavirus crisis.

Indeed, Begbies Traynor’s Red Flag Alert research now shows seven consecutive quarters of increasing cases of significant financial distress, with some 527,000 businesses falling into that category at the end of June.

Although the number of companies in trouble is clearly on the rise, steps taken to help the country cope with the pandemic has had the effect of limiting the frequency with which indebted and insolvent businesses are being brought to court.

Instances of CCJs and winding up petitions are down sharply this year compared with last, which has had a profound impact on the number of insolvency cases being legally handled in court.

However, that situation will inevitably change and many companies that are heavily indebted and effectively unable to cover their costs are expected soon to be forced out of business.   

“Despite more than 30,000 businesses having fallen into distress since the start of the year, the real level of corporate underperformance is being concealed by inaction on distressed businesses in the courts,” says Ms Palmer from Begbies Traynor.

“With government initiatives to support businesses now winding down, we will start to see the true impact of coronavirus on the UK during the autumn.”

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
22/10/2021
Voluntary Liquidation Rates Up to Highest Levels in Almost 3 Years
The rates at which companies in England and Wales were being placed into liquidation on a voluntary basis increased to the fastest pace since January 2019 during September of this year.
Read more
14/10/2021
Business Insolvency Rates Set to Rise, Says Bank of England
Rates of business insolvency across the UK are likely to increase during the final three months of 2021, according to the Bank of England.
Read more
15/09/2021
Insolvency Protection Measures to be Phased Out from October
Measures introduced to protect struggling businesses from being forced into insolvency or liquidation during the pandemic are to be phased out from October 1st, the government has confirmed.
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