Corporate insolvencies hit 30-year high

February 5, 2024

Latest figures from the Insolvency Service for England & Wales have revealed corporate insolvencies are running at a 30-year high.

In 2023, there were 25,158 registered company insolvencies, comprising 20,577 creditors’ voluntary liquidations (CVLs), 2,827 compulsory liquidations, 1,567 administrations, 185 company voluntary arrangements (CVAs) and two receivership appointments. The number of company insolvencies was the highest annual number since 1993.

CVLs increased by 9% from 2022 to a new record high number in the time series going back to 1960. Numbers of compulsory liquidations (up 44%), administrations (up 27%) and CVAs (up 67%) were also all higher than in 2022.

One in 186 active companies (at a rate of 53.7 per 10,000 active companies) entered insolvent liquidation in 2023. This was an increase from the 49.6 per 10,000 active companies that entered liquidation in 2022, and the rate in 2023 was the highest level since Q3 2014.

Commenting on the figures, Giles Maynard-Connor KC, Head of Exchange Chambers’ Business and Property Department and its Insolvency Team said:

“The Insolvency Service’s latest figures paint an uncertain economic picture. High inflation and interest rates have undoubtedly created a challenging environment for many businesses.

“With insolvency rates accelerating, it is essential that creditors, debtors and office-holders are assisted by legal professionals who have a proven track record in this area of law.

“At Exchange Chambers, our nationally renowned, specialist Insolvency Team undertakes all aspects of corporate (and personal) restructuring and insolvency work, and we provide such assistance at all levels.”