Business failures hit highest level since 2009 after end of pandemic support

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There were 22,109 insolvencies in 2022, the highest figure since 2009 and an increase of 57% from 2021, when 14,059 businesses went bust

Made.com was among well-known names to collapse last year, with Next picking up the brand from administrators

The findings suggest that the business landscape is undergoing a correction after the pandemic support packages kept many companies alive that may have collapsed earlier. The number of company insolvencies rose sharply but this partly reflects the higher number of active businesses.Meanwhile, the rate of company liquidations rose to 49.5 per 10,000 active companies. This is up from 32.9 from the previous year and the highest since 2015, but only around half the level seen in 2009.

Catherine Atkinson, director of restructuring and forensics at the professional services firm PwC, said:"The Insolvency Service's report... is a stark reflection of the challenges businesses have been and will continue to face in the first quarter of 2023. "Financial headwinds caused by trading costs, rent, interest rates and utility bills alongside other operational pressures are causing increasing amounts of drag on companies weathering working capital pressures as they wait for payments to come in for goods and services…The next few months will be a critical time for business resilience."

 

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Hastings .👆

Not surprised, there hasnt been a small business friendly government in power since the 80s.

The Scamdemic did exactly, what it was designed to do… more shite loading as we speak…

Inland revenue is in for a shock. That tax isn’t going to be coming. You hike up corporation tax and it’s going to give less revenue. That lockdown money has been spent on holidays, extensions, new private cars, boats, motor homes. The joys of lockdown luxury gift aid

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