The Insolvency Service published their latest set of quarterly statistics covering April to June 2020.
Overall numbers of company insolvencies in England and Wales fell in Q2 2020 by 23% when compared with Q1 2020, and by 33% when compared with the same quarter in the previous year.
Whilst in ‘normal’ times this might be considered good news, because these aren’t normal economic circumstances, they should be interpreted with extreme caution.
Government measures put in place in response to the coronavirus pandemic, drove the reduction in company insolvencies. These included:
These measures provided time for some businesses to take stock and have provided a short term safety net but businesses are by no means out of the woods. The furlough scheme is being wound up by 31 October and the Eat out to Help Out scheme which provided a short term boost for the hospitality industry has now ended.
The whole retail industry is having to to come to terms with massively shifting patterns of behaviour which is already having a major impact on well-established High Street brands and it faces an uncertain future.
Sadly, we expect to see a significant increase in the number of insolvencies in Q3 of 2020.
If you are concerned about the future of your business get in touch with us now. Our experienced team can work with you to look at what options are available to your business.