Everything You Need To Know About The Latest Insolvency Statistics

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Around the midpoint of each month, the Insolvency Service publishes its latest insolvency statistics. This month has been no different, and an update has now been issued detailing the number of company and individual insolvencies registered in November 2023. These insolvency statistics provide valuable insights for business directors and stakeholders, offering specific information about the number of compulsory liquidations, creditors voluntary liquidations (CVLs) and administrations compared to the same month in the previous year. 

Here is everything you need to know from the latest release:

Company Insolvency Levels Reach 14-Year High

The number of company insolvencies registered in November 2023 was 2,466 which, as highlighted by R3 in their commentary of the latest insolvency statistics, pushes total company insolvency numbers to their highest levels since 2009. R3 are the UK’s insolvency and restructuring trade body and comments that this 14-year high is down to two main factors: “numbers being suppressed by Government support measures” in the post-COVID period, and “a relay of economic issues that have taken their toll on businesses.” This headline will understandably be concerning for company directors and highlights the importance of seeking advice from a professional at the earliest available opportunity should you be concerned about your financial position.

CVL and Compulsory Liquidation Numbers Have Increased

Not only do November’s overall company insolvency figures result in the highest yearly numbers since 2009, but these totals are also 21% higher than the same month last year. November’s rise in company insolvencies is largely due to increases in two specific types of liquidation, namely CVLs and compulsory liquidation. 359 compulsory liquidations and 1,962 CVLs were reported, indicating that pressure on businesses is high with many either being chased by creditors or choosing to close down voluntarily while they have the option to do so.

Administration Numbers More Steady

The Insolvency Service’s monthly insolvency statistics also provide details of the number of company administrations in November 2023. The report highlights that 133 administrations were filed which is 1% less than November 2022. These numbers indicate a relative steadiness in terms of year-on-year administrations, certainly in comparison to wider insolvency figures. However, it is important to note that this levelling out does come after a huge increase in administrations reported back in May 2023, illustrating that there is still fluctuation in administration numbers across the year.

What The Latest Insolvency Statistics Mean For Your Business

November 2023’s insolvency statistics no doubt indicate that we are working through an incredibly tough period. Particularly at this time of year, strong performance is crucial for survival but market conditions are tough and consumer confidence is low. If you are concerned about your position as 2024 approaches or the Christmas period does not go as you hoped, it is essential that you get advice from a professional as soon as you can. Acting quickly will give you as many options as possible as well as crucial time to work out what is best for your business before real creditor pressure.

The team here at My Liquidation can provide you with trustworthy advice right away. Get in touch with us today to discuss your position and understand your options so that you can make an informed decision, whether that be liquidation or an alternative process.

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