The number of registered company insolvencies in March 2022 was 2,114. This is 34% higher than the number registered three years prior (pre-pandemic; 1,582 in March 2019). Overall, the first quarter of 2022 has seen 5,197 company insolvencies, the highest quarterly figure since Q3 2017. The bulk of these insolvencies were made up of Creditors’ Voluntary Liquidations (CVLs), with 1,844 CVLs in March 2022, more than twice the number of CVLs recorded in March 2021 and up by 62% on figures from March 2019.
This surge in CVLs is predictable considering the withdrawal of government support and the ending of restrictions on creditors and landlords taking action against businesses. Businesses with heavy debt burdens have seen their financial issues exaggerated by issues such as rising interest rates, growing energy costs, and the withdrawal of government financial support.