Insolvency on the increase

January 30, 2024

In the statistics released for the month of December 2023, we can see that insolvency is on the increase. The total number of insolvencies increased by 2% compared to December 2022.

A total of 2,002 companies became insolvent in December 2023, surpassing the levels seen during the period of government support measures in 2020 during the pandemic.

The statistics suggest that whilst the current economic challenges are impacting businesses hard, this is resulting in a growing number being placed into insolvency procedures.

Total Number of Insolvencies December 2023

Information extracted from shows that the total number of insolvencies for December 2023 were made up as follows:

  • Compulsory liquidations (WUC) – 153
  • Creditors’ voluntary liquidations (CVL) – 1,731
  • Administrations (ADM) – 103
  • Company Voluntary Arrangements (CVA) – 15

Increase in Insolvency Through the Years  

The table below shows the total number of insolvencies year-to-date for the top three sectors that have experienced the most insolvencies (January – December 2023). It also includes the number of insolvencies for the same period in 2020, 2021, 2022 and 2023. The % share shown is for the entire year up to December 2023.

Sector Year – 2020 Year – 2021 Year – 2022 Year – 2023 % Share
Construction 2,474 3,147 4,776 5,124 16.97%
Wholesale and Retail 2,057 2,017 3,652 4,349 14.40%
Accommodation & Food services 2,017 1,928 3,132 4,227 14.00%

The numbers show that amongst the insolvencies that have taken place this year, the construction sector remains the most significant contributor. This represents almost 17% of all company insolvencies in 2023.

In addition, wholesale and retail saw 4,349 companies become insolvent this year to date and with respect to accommodation and food services, the total number of insolvencies was 4,227.

Reasons for the Increase in Insolvency 2023

The past year has been especially tough. Costs have risen, and people have been hesitant to spend money amid concerns about covering essential costs. Increasing interest rates have added pressure to repay debt.

Whilst inflation and energy costs start to decline, the knock-on effect is still expected to extend to many more sectors in the forthcoming months. Statistics for insolvencies in January 2024 are set to be released on February 16, 2024.

BRI Business Recovery and Insolvency

At BRI Business Recovery and Insolvency, we are seeing trends similar to those in the insolvency statistics listed above. If you or your business are experiencing any financial pressures and believe you will benefit from free impartial advice from BRI Business Recovery and Insolvency, please get in touch with one of our management team to see how we can assist you today.

Here at BRI Business Recovery and Insolvency, we will offer the right advice first time every time, regardless of the fee outcome.