Compulsory liquidations soar in November
Matthew Pinto-Chilcott, Owner of Consensus HR comments: “Unfortunately, this is not the greatest of news just before Christmas 2022 and the New Year 2023 but really does continue to emphasise the difficulties that businesses are continuing to experience to remain in business.
At Consensus HR, we see businesses from all spectrums of the Employee Life Cycle, when the country and economy is booming, recruitment increases and when it is not, redundancies / company restructures take place, and it is in these instances together with employee relations and development of the team that we are called upon for support. If your business is having to consider changes with its team, we highly suggest for the welfare and motivation of the team and customer service / sales that you contact a HR Consultancy to support you and help make an extremely difficult business decision completed to best practice and the law.”
Company insolvencies in November were 21% up on the same month last year and 35% higher than in 2019 – the last pre-pandemic November. The Insolvency Service data show that there were 2,029 registered company insolvencies last month. Of these, 1,595 were creditor voluntary liquidations. The analysis also reveals that there were five times as many compulsory liquidations last month than in November 2021, with a 7% increase on November 2019. The Insolvency Service said compulsory liquidations had increased from historic lows during the pandemic, partly as a result of an increase in winding-up petitions presented by HMRC. Christina Fitzgerald, president of insolvency and restructuring trade body R3, said: “What we’re seeing here is a perfect storm of creditors pursuing unpaid debts and directors choosing to close down their businesses — either before this choice is taken away from them or because they have simply run out of road.” David Kelly, Head of Insolvency at PwC, said: “This is a sobering reminder that rising interest rates, energy costs and supply chain issues are starting to bite as we head into 2023.”