• Login
    • Advanced search
    • Title
    • Channel
    • Module
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive and Mobility
      • Consumer
      • Manufacturing and Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transportation and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Digital Assets and Blockchain
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • New Nuclear
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
Hogan Lovells Engage 5.7.26
      • Title
      • Channel
      • Module
    • Hit ENTER to search in content
    • Advanced search
    • Login
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive and Mobility
      • Consumer
      • Manufacturing and Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transportation and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Digital Assets and Blockchain
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • New Nuclear
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
  1. News
  2. UK company insolvencies increase significantly in Q2 2022

UK company insolvencies increase significantly in Q2 2022

04 August 2022
    • Share by email
    • Share on
    • Twitter
    • LinkedIn
    • Get link
    • Get QR Code
    • Download
    • Print

The quarterly UK insolvency statistics (covering April to June 2022 inclusive) were released on 2 August 2022. They show that there has been an 81% rise in company insolvencies in England and Wales when compared with the same quarter in 2021, with the total number of company insolvencies in Q2 being the highest since Q3 2009. Significantly, creditors’ voluntary liquidations soared to 4,908, the highest number since the records started in 1960. The number of insolvencies look set to remain high for some time yet, given the difficult economic climate. This quarter saw a 13% rise in insolvencies as compared with Q1 this year.

The support measures offered by the government during the pandemic period saw the number of corporate insolvencies drop. It is unsurprising that as those measures have been withdrawn or reduced, company insolvency is on the increase. However, that is not the whole picture. One of the key factors pushing up the statistics is the cash flow difficulties that businesses are facing through a combination of the removal of COVID-related fiscal support measures, the rising cost of fuel and energy, the war in the Ukraine and high inflation. Consumer confidence and demand is being eroded and some businesses are struggling to find staff and source materials. This combination of significant cost increases combined with weakening demand is leading to a decline in general economic activity. Some companies are also saddled with COVID related debts which they are unable to repay. As inflation becomes the worst it has been since 1970, an ever-growing portion of companies are simply unable to continue trading.

The construction industry, retail, food producers and manufacturers with high energy costs are amongst the industries hit hardest recently given their susceptibility to supply chain fluctuations and rising energy costs. The current market consensus is that insolvencies may continue to rise in this challenging economic climate over the coming months before we start to see business performance improving and the rate of insolvencies begin to drop.

 

 

Authored by Charlotte Lamb and Lucy Dickinson Green.

Contacts
Charlotte Lamb
Senior Associate
London
James Maltby
Partner
London
Alex Kay
Partner
London
Related Materials
Sanctions Navigator

Sanctions Navigator: Russia Sanctions

Keywords Insolvency, 2022, United Kingdom, Liquidation
Languages English
Topics Restructuring and Workouts, Insolvency and Bankruptcy
Countries United Kingdom
Delete Comment ?

Are you sure want to delete comment ?

Get link
Embed
Share by email
Get QR Code

Scan this QR Code to share this content

  • Contact us
  • Disclaimer
  • Privacy
  • Cookies
  • Legal Notices
  • Terms of Use

 

This website is operated by Hogan Lovells International LLP, whose registered office is at Atlantic House, Holborn Viaduct, London, EC1A 2FG. For further details of Hogan Lovells International LLP and the international legal practice that comprises Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses ("Hogan Lovells"), please see our Legal Notices page. © 2022 Hogan Lovells.

Attorney advertising. Prior results do not guarantee a similar outcome.

Thomson Reuters HighQ Logo
© 2023 Hogan Lovells | Privacy Policy | Terms of Service