Azets: July insolvency statistics – Formal insolvencies to continue to increase as furlough comes to an end, says UK’s largest accountancy firm for SMEs.
Nicola Clark, Restructuring and Insolvency Partner at Azets in the North West, the UK’s largest regional accountancy and business advisors to SMEs, comments on the July 2021 corporate insolvency statistics for England and Wales:
“This increase in corporate insolvencies when compared to the same month last year is not surprising – July saw the lifting of the final lockdown restrictions and many businesses will have had to start making payments in relation to their BBLS and CBILS loans. We expect the number of formal insolvencies in the region to continue to increase as furlough comes to an end and as the moratorium on winding up petitions is lifted at the end of September.
“Whilst the overall number of corporate insolvencies has not yet returned to pre-Covid levels, the number of CVLs seen in July is in line with the numbers seen prior to the pandemic, which could be indicative that CVL numbers will shortly exceed pre-pandemic levels.
“As the region’s businesses try to find the new normal and government support initiatives come to an end, management will need to ensure they are properly advised, and their advisors understand the needs of their business to help them navigate the challenges that lie ahead.
“SMEs may be particularly vulnerable over the next six months and as the largest provider of accountancy and business advisory services to SMEs in the UK, we will be working closely with our clients to provide them with the advice and support that they need with their businesses during this time and beyond.”