Huge rise in insolvencies as firms struggle with debts and repaying Covid loans

By Harry Mottram: With furlough gone and covid loans overdue thousands of businesses are struggling to survive and hundreds collapsing every month. The effect on the economy cannot be underestimated as inflation edges towards double digits, interest rates rise and the continuing after effects of Brexit and Covid add to the woes.

The latest government figures show that in April 1,991 companies collapsed more than double the figures from 12 months ago and 39% up from 2019 for April of that year.

The Insolvency Service said: “In April 2022 there were 1,777 Creditors’ Voluntary Liquidations (CVLs), more than double the number in April 2021 and 74% higher than April 2019. Numbers for other types of company insolvencies, such as compulsory liquidations, remained lower than before the pandemic, although there were three times as many compulsory liquidations in April 2022 compared to April 2021, and the number of administrations was 51% higher than a year ago.”

Ian Carrotte of ICSM said the figures mirrored information from the credit intelligence group’s members as anecdotal stories emerge of late payment and firms entering administration such as the YM Group in Yorkshire.

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk