The number of company insolvencies in September 2023 was 16.5% higher than the same month last year, according to official data published in October by the Insolvency Service.
Corporate insolvencies decreased to a total of 1,967 compared to August’s total of 2,319, but compared to September 2022’s figure of 1,688, they increased by 16.5%.
Nicky Fisher, president of R3, the UK’s insolvency and restructuring trade body, commented on the corporate insolvency statistics:
“September 2023’s corporate insolvency figures are the highest we’ve seen for this month in four years as a combination of economic issues, director fatigue, and the post-COVID insolvency lag which has seen more firms turn to corporate insolvency processes to resolve their financial issues.
“It’s clear that the challenging trading climate is taking its toll on businesses. Firms are operating in a climate where people are cutting back their spending on non-essential items, while at the same time the costs of operating a business remain high – and will only increase as the weather gets colder and the cost of borrowing and servicing existing debts get more expensive.
“Our message to company directors is simple: if you’re worried about your business, seek advice.”