UK company insolvencies for May 2023 up 40% on last year

The May 2023 company insolvency statistics have today been published by the Office for National Statistics.

The number of registered company insolvencies for May 2023 was 2,552, 40% higher than recorded in May 2022 (1,825) and up from 1,685 in April 2023.

The 2,552 total insolvencies were comprised of:

151 administrations, up 80% over May 2022
2.181 creditors’ voluntary liquidations (CVLs), 38% higher than in May 2022
189 compulsory liquidations, up 34% over May 2022
31 compulsory voluntary arrangements (CVAs), 121% higher than May 2022

What is clear is that whilst the pandemic is largely in the rearview, many businesses took a big hit and are struggling to bounce back. The after effects for businesses are forecast to linger for some time.

London-based corporate restructuring advisers ReSolve were recently appointed as Administrator to London Irish after it was unable to recover financially from the pandemic, following the closure of stadiums and subsequent loss of significant match day revenue. Sadly, this is the third Premiership rugby team this year to fall into administration and the firm is seeing this across other businesses in the leisure and hospitality sectors.

The uncertainty around interest rates is unlikely to have helped matters with concerns about future higher costs of debt and overheads and it is likely more pain will be experienced in the second half of 2023.

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