All the information you need to know
The June figures continue to show a precipitous decrease in the number of company insolvencies in the UK.
There were a total of 732 company insolvencies in England and Wales – down from 944 in May.
This was composed of 557 Creditor Voluntary Liquidations (CVLs – down from 790); 61 compulsory liquidations (up from 32); 100 administrations (down from 110) and 14 Company Voluntary Arrangements (CVAs – up from 12.)
This is a 50% year on year decrease on the number of total company insolvencies from June last year. This is down to the decrease in the number of CVLs and compulsory liquidations which fell by 45% and 78% respectively.
One of the key supporting factors in the reduction of company insolvencies is mainly down to the range of financial government support put in place as a response to the coronavirus pandemic.
Also the temporary prohibition of the use of statutory demands and certain winding-up petitions between 27th April and 30th June 2020, further extended to 30th September by the Corporate Insolvency and Governance Act has had a significant dampening effect on the figures.
Additionally, compulsory liquidations require a winding-up order to be obtained from the court by a creditor, shareholder or director. Since the lockdown was declared on 23rd March, the HM Courts & Tribunals Service has been running a reduced service – so less capacity means less cases which means less liquidations.
Green shoots appearing?
Like the first green shoots appearing after a harsh winter, we can just about see signs of positive business activity for the first time in a long while.
Lockdown is easing and people are gradually returning to familiar patterns of work, living and consuming albeit slowly and with more restrictions than any of us have ever known.
Get in touch with us to see what we can do to help you get up and running right out of the gate if you’re allowed to reopen.
We can help you make some tweaks or bigger changes that will have you ready to have the best rest of 2020 you can.