Insolvencies forecast to hit 33,000 in 2024

The number of company insolvencies remains significantly higher than just a couple of years ago, according to new figures from the Insolvency Service.

The figures also confirm that the number of companies going into insolvency in the first five months of 2024 was the highest in that period since 2008.

There were 2,006 registered company insolvencies in England and Wales in May 2024, which was six per cent lower than the month before.

The Insolvency Service said that the number of monthly insolvencies remains “much higher” than seen during the pandemic and between 2014 and 2019.

Voluntary liquidations made up the majority monthly insolvencies, with 1,590 recorded in May. There were also 271 compulsory liquidations, 126 administrations and 19 company voluntary arrangements.

The Insolvency Services said that company insolvencies have been volatile over the past few months “but there is no clear indication of an increasing or decreasing trend”.

Last year saw the highest number of company insolvencies since 1993, with 25,000 firms going into insolvency.

The rise over recent years reflects the difficult economic environment. The Centre for Economics and Business Research (CEBR) suggest there could be as many as 33,000 insolvencies this year, surpassing 2023’s 30-year high.

Commenting on the latest figures, Mark Goodwin, Managing Director of Optimise said: "Within this large number of insolvencies, there are numerous legitimate legal claims against fraudulent directors that might not be pursued due to lack of funds. Optimise is here to bridge this gap, ensuring that insolvency practitioners and creditor estates receive maximum returns. By providing the necessary funding, we help ensure that justice is served and creditors are fairly compensated."