Company liquidations increase in Q2 2019
The latest statistics from the Government’s Insolvency Service have revealed that the number of companies going into liquidation has risen in the second quarter of the year.
In the three months to the end of June, 4,321 companies entered into insolvent liquidation, an increase of 2.6% on the previous quarter and a rise of 11.9% on the same quarter in 2018.
Overall, the number of companies going into formal insolvency proceedings in the quarter was at the highest level since 2014.
Commenting on the figures, Deborah Lockwood of Graywoods said, “The upward trend in the number of companies getting into serious difficulties is now clear. This will be the third year in a row that the number of company failures has increased. It is clear that certain sectors of the economy are under serious pressure and we are predicting that the number of companies becoming insolvent will continue to rise in 2020.
“Whatever the causes, it is heart-breaking to see businesses closing down despite the hard work of their owners, investors and employees. The ‘domino’ effect within a supply chain can also be devastating and cause far-reaching problems.
“Our message is always that business owners should seek advice at the earliest opportunity. We are proud of our expertise in company turnaround and business rescue, but all too often it is too late to reverse the situation by the time the directors contact us for help. The sooner we get involved, the more likelihood there is of finding a way of saving the business.”
To find out more about all aspects of company liquidation and whether it is the best option for your business, call Graywoods today on 0114 285 9500.