As the UK retail industry continues to experience turmoil, and Brexit uncertainty grows, there’s been an increasing rise in the number of companies entering administration. In fact, insolvencies have now reached the highest levels seen in the last 5 years.
The latest Insolvency Statistics have revealed that the first 3 months of 2019 saw 451 administrations, which was more than a 20% increase when compared to the last 3 months of 2018. Insolvencies, including liquidations and Creditors Voluntary Arrangements (CVAs), have risen by 6.3%, totalling more than 4,000 in the first quarter of the year.
No doubt the uncertainty over the Brexit deadline, which was originally on 29th March, has played a pivotal role in these rising figures. Many companies, particularly smaller firms, have also felt the mounting pressures from rising employment costs and business rates.
The national chairman of the Federation of Small Businesses, Mike Cherry stated:
“Ongoing uncertainty is a critical issue for small firms and the self-employed, and central to this is the unknown nature of what the UK’s relationship will look like with the EU…”
According to the statistics, a number of industries have seen a significant increase in underlying insolvencies over the first quarter of the year – with the retail, wholesale and vehicle repair sectors being the worst affected.
Personal insolvencies were also 15.9% higher in the first 3 months of this year than they were at the start of 2018 – due, in part, to the number of people being made redundant from the companies which have been struggling and closing down.
If your business is no longer able to meet its debts and is having cashflow problems, you should seek professional advice – straight away – from your Accountant and / or a Licensed Insolvency Practitioner.
They will have the experience and expertise to assess your particular situation, and offer advice as to the best options available to you, such as:
- Liaising (informally) with your creditors to give you some breathing space.
- a Company Voluntary Arrangement (CVA).
- a Creditors’ Voluntary Liquidation (CVL).
- a pre-pack Administration.
Clarke Bell can give you the free and confidential advice you need.
And, our fees are very affordable.
Contact our friendly team today, on 0161 907 4044 or [email protected]
