Corporate insolvencies increased by 33.6% in August 2023 as long-term economic issues continue to affect UK businesses.
Last month saw a total of 2,308 insolvencies, up from 1,728 in July and 18.9% higher compared to August 2022's figure of 1,941.
Looking at the bigger picture, the number of registered company insolvencies also rose by 71.3% compared to August 2021 (1,347), and by 69.1% compared to pre-pandemic levels in August 2019 (1,365).
Eleanor Temple, chair of the UK's insolvency and restructuring trade body R3 in Yorkshire, responded to the statistics:
"August's corporate insolvency figures were their highest for this month in four years as a mixture of long-term economic issues, director fatigue, and creditor pressure saw more companies enter an insolvency process in an attempt to resolve their financial issues or shut their doors."
"The sad fact is that businesses are being hit from a variety of angles - and all these blows have an effect on their bottom line. Cost inflation has been a problem for some time, and while this is expected to ease it is still sitting higher than many had predicted.
"Our message to directors is simple: be alert to signs your business could be financially distressed and seek advice as soon as they show themselves. If you're having problems paying wages, staff or suppliers, if stock is starting to pile up, or if you're worried about your business and its finances, that's the time to speak to a qualified advisor"
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