- The number of company insolvencies in Q2 2022 was 13% higher than in Q1 2022 and 81% higher than in Q2 2021. The number of CVLs increased to the highest quarterly level since the start of the series in 1960. The number of compulsory liquidations also increased, but remained lower than levels seen before the coronavirus (COVID-19) pandemic.
- Between 1 April and 30 June 2022 (Q2 2022), there were 5,629 (seasonally adjusted) registered company insolvencies, comprising 4,908 creditors’ voluntary liquidations (CVLs), 368 compulsory liquidations, 320 administrations, 32 company voluntary arrangements (CVAs) and one receivership appointment.
- One in 228 active companies entered liquidation between 1 July 2021 and 30 June 2022. This was an increase from the one in 383 active companies that entered liquidation in the 12 months ending 30 June 2021.
Registered company insolvencies increased in Q2 2022, driven by an increase in CVLs, and were higher than pre-pandemic levels:
From the start of the COVID-19 pandemic until mid-2021, numbers of company insolvencies were low when compared with pre-pandemic levels. Compulsory liquidation, administration and CVA numbers remained lower throughout 2021 and were still lower than pre-pandemic levels in Q2 2022. This was due to Government fiscal and other measures that were put in place to support businesses and individuals, including:
- Temporary restrictions on the use of statutory demands and certain winding-up petitions.
- Government financial support for companies, such as bounce-back loans.
On 30 September 2021, some of these temporary measures either ended or were replaced by new tapering measures. On 31 March 2022, all of the remaining temporary insolvency measures ended.