As anticipated, the end of emergency government COVID-19 support schemes caused company insolvencies in England and Wales to rise to their highest (since 2012) level in the first quarter of 2022. A total of 4,896 companies became insolvent in the first quarter of this year, double the number a year earlier, the government reported last week.
Most experts predict that company insolvencies will likely rise further in coming months due to surging operating costs and the removal of the last pandemic-related court protections. The Financial Times, Reuters, and others have widely reported this.
Several commentators have noted that “voluntary” liquidations (where creditors and companies reach a deal outside court) hit the highest level since records began in 1960, but compulsory liquidations stayed below prepandemic levels.
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