UK sees highest company voluntary liquidations since 2009

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England and Wales have seen a surge in company directors winding up businesses that are unable to pay their debts, taking so-called voluntary liquidations to their highest level since 2009 in the depths of the global financial crisis.

Total company insolvencies in England and Wales jumped in the three months to the end of September to their highest since the start of the COVID-19 pandemic at 3,765, up 43% on a year earlier, government data showed on Friday.

But creditors' voluntary liquidations - which in normal times account for two thirds of insolvencies - rose to their highest total since the three months to the end of June 2009 in the latest quarter at 3,471, more than 90% of the total. Businesses were likely to come under further pressure in the coming months due to a surge in energy prices and the removal of legal restrictions on forced insolvencies, Tett added.

 

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