{"id":21997,"date":"2022-06-08T12:48:10","date_gmt":"2022-06-08T12:48:10","guid":{"rendered":"https:\/\/smh.group\/?p=21997"},"modified":"2022-06-08T12:48:10","modified_gmt":"2022-06-08T12:48:10","slug":"company-insolvencies-on-an-upward-trend","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/company-insolvencies-on-an-upward-trend\/","title":{"rendered":"Company insolvencies on an upward trend"},"content":{"rendered":"

Although showing a slight improvement from March, the number of company insolvencies in April of this year was more than double the number from April 2021. This shows just how important it is to get advice sooner rather than later if your company is experiencing problems.<\/strong><\/p>\n

The majority of insolvencies were creditors\u2019 voluntary liquidations (CVLs):<\/p>\n\n\n\n\n\n\n\n
 <\/td>\nTotal insolvencies<\/strong><\/td>\nCVLs<\/strong><\/td>\n<\/tr>\n
April 2019<\/strong><\/td>\n1,429<\/td>\n1,024<\/td>\n<\/tr>\n
April 2020<\/strong><\/td>\n1,199<\/td>\n\u00a0\u00a0 933<\/td>\n<\/tr>\n
April 2021<\/strong><\/td>\n\u00a0\u00a0 925<\/td>\n\u00a0\u00a0 815<\/td>\n<\/tr>\n
April 2022<\/strong><\/td>\n1,991<\/td>\n1,777<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Figures already available for May show no improvement. The government\u2019s support measures kept insolvencies at bay during the Covid-19 pandemic, but the expected post-pandemic boom has not materialised for many businesses, followed instead by other damaging economic factors such as high inflation, the Ukraine war and supply chain challenges due to continuing Chinese lockdowns.<\/p>\n

The insolvency figures suggest many directors lack confidence in their company\u2019s ability to continue trading in the current climate possibly pre-empting later forced closure by bringing forward a difficult decision. Directors who have any doubts about their business are advised to seek advice as soon as possible. There are two tests which can act as a warning sign of insolvency:<\/p>\n