Business collapses spread beyond property

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Insolvencies and restructurings have hit the highest monthly level in more than seven years, as higher interest rates and weaker consumer spending start to bite.

Oscar Colman

While some of the spike is attributed to a “catch-up” of struggling businesses that delayed folding during the pandemic, insolvency practitioners say momentum is building after a quiet few years. “We know interest rate rises are becoming a problem on a range of levels and the tax office is going to start getting much harsher with people about unpaid corporate tax.”

McGrathNicol chairman Jason Preston said, “money is no longer free” and marginal businesses were struggling to access equity and debt funding to stay afloat.

 

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