The Insolvency Service reports that company insolvencies in England and Wales jumped 40% year-on-year in May. About 2,552 companies were declared insolvent last month, largely through creditors’ voluntary liquidations (CVLs).
Clearly many directors are running out of time and patience.
Nicky Fisher, the president of insolvency and restructuring industry group R3, said: “Three years of economic turmoil is taking its toll on businesses.” They are the highest levels seen since January 2019.
Interest rates are also being predicted to keep on rising with the FSB (Federation of Small Businesses) questioning the need.
Craig Beaumont, head of external affairs at the FSB, notes that while higher interest rates “are supposed to be painful and take money out of an overheating economy,” they are coming at a time when firms are already struggling.
In these circumstances it is more important than ever to manage cash flow and K2 has a free tool to help you.
If you would like to talk over your options for possible restructuring give us a call.