As the number of insolvencies in England and Wales shot up by a fifth and remain at a level not seen since the 2008-09 recession, the economic path ahead may not be so thorny, the Midlands branch of insolvency and restructuring body R3 said.
The rate of company insolvencies during the 12 months ending April 30 was 57 per 10,000, rising from 52.6 per 10,000 a year earlier. “One factor behind this is likely to be directors closing their businesses at the end of the financial year, either because they believe the market won’t improve or because they’ve simply had enough after four tough years.
"Also of note is the increase in administrations. While this isn’t by a large number, it does suggest that there is a growing volume of businesses which could potentially be rescued rather than wound-up, and as the economy recovers we would anticipate this rise will continue.