Company insolvencies rise in second quarter of the year

The Insolvency Service individual insolvency statistics published for quarter two (April to June 2019) show that company insolvencies increased between April and June 2019 to 4 321 which is 2.6% higher than the previous quarter. This rise was driven by company voluntary liquidations which increased by 6.9% compared to quarter one. All other types of company insolvency fell: compulsory liquidations by 4.1% company voluntary administrations by 1.1% and administrations by 11.4% from a five year high in quarter one of 2019.

Louise Brittain partner and head of contentious insolvency at Wilkins Kennedy said: ‘Overall since 2016 the number of company failures has been erratic quarter on quarter largely as a result of large corporate failures and many companies in the UK running on tight margins and as a result of the many zombie companies still trading. Administrations increased 15% on the same quarter last year and compulsory...