Brexit Uncertainty? China Slowdown? Insolvencies are Rising

Take Insolvency Advice Early to Help Cope With Financial Difficulties

As the Brexit process inches to its final denouement, whatever that might turn out to be, there is no doubt that the uncertainty it has created in the business world has already had its effect. Anecdotally, our team of insolvency practitioners in London (as well as in our other offices) has been giving out more company insolvency advice to businesses who are being proactive and planning to meet the challenges ahead. Statistically, figures from the Government show that in 2018, corporate insolvencies in England and Wales rose to their highest level since 2014.

It isn’t just the Brexit effect, of course. It’s more complex than that, with global indicators such as the slow down in the rate of China’s GDP growth and concerns about world trade playing their part. Closer to home, the relentless move to on line purchasing has seen many high street retailers suffer, whilst the significant shift away from diesel engines has caught out several car manufacturers, including JLR. Difficult times ahead? Certainly. As bad as 2010? Maybe not – only time will tell. In this article we take a look at some of the data and conclude that if your business is in difficulties, the sooner you take insolvency advice the better.

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Government Statistics – Insolvencies are Up

The headlines from the latest Government Insolvency Statistics for England and Wales are:

So much for the statistics. It will be interesting to see the Q1 figures for 2019 when they come out. All we can really say is that insolvencies are on the increase. We don’t know how bad it will get, but if your company is facing financial difficulties, now is the time to act and seek some company insolvency advice. Here at Antony Batty and Co, the first consultation is FREE.

How is Business Being Affected?

As is often the case, there is conflicting data.

Stuart Frith, president of insolvency and restructuring trade body R3, recently commented:

“The pressure point for businesses most frequently cited by our members is weak consumer demand. People just don’t have much spare cash at the moment, reflected in the rise in the number of personal insolvencies.

This also spells bad news for businesses at one remove from the consumer, such as manufacturers supplying consumer products, shop fitters, or logistics firms. Every business is part of a network and one struggling business will affect others.”

On Brexit uncertainty and the future EU-UK trading relationship, he said that this is “already forcing businesses to hold off on investment decisions, again affecting their suppliers and customer networks. It has also prompted some companies to stockpile, putting a squeeze on cash flow and reserves.”

Our Role as Insolvency Practitioners

Our role is not only to supervise the process of liquidation, it is also to help try and keep struggling business open and trading in some shape or form, through the insolvency procedures of Administrations and Company Voluntary Arrangements. In addition, we give company insolvency advice to businesses struggling financially to help them avoid insolvency and turn their fortunes around.

Need Help with Insolvency, Recovery or Turnaround?

If you or your business is facing insolvency, the sooner you contact us, the more we can help.

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Contact us for Company Insolvency Advice

Our team of insolvency practitioners in London and at our other offices, is highly experienced in helping distressed businesses to turn their fortunes around. Take a look at some of our testimonials. This could include help and advice on:

If your business is facing difficult times ahead, seek advice and take action sooner rather than later. We are specialists in giving company insolvency advice and the first meeting is FREE. Please contact us or call us on 0208 088 0633 for an initial discussion.