Number of Companies Going Bust at Record High: Insolvency Service

The number of businesses going bust in England and Wales last year reached a record high since 1993 amid inflationary and interest rate pressures. Data released by the Insolvency Service on Jan. 30 showed that 2023 was a tough year for companies to stay afloat. More than 25,000 company insolvencies were registered in 2023, with the last quarter of the year seeing the highest number of insolvencies since the 2008 financial crisis and the start of records in 1960. Among the high-profile casualties was the high street retail chain Wilko that went into administration in August 2023, putting put 12,500 jobs at risk. The most common company insolvency procedure last year was creditors’ voluntary liquidations (CVLs), accounting for 82 percent of cases. Other reasons for companies going bust included compulsory liquidations (11 percent), administrations (6 percent), and company voluntary arrangements (1 percent)....