Corporate Insolvency Rise Indicates Start of Struggle For Businesses Profitable Pre-Covid

A month-on-month rise in the number of corporate insolvencies in England and Wales may indicate that businesses which were healthy and profitable pre-COVID-19 are now starting to struggle, East Midlands Business Link reported. This is according to the Midlands branch of insolvency and restructuring trade body R3 and comes on the back of figures published by the Government’s Insolvency Service which show that the number of companies entering insolvency increased to 926 in September 2020 compared to August’s figure of 784. R3 Midlands Chair Eddie Williams, a partner at Grant Thornton in the East Midlands, said: “The latest statistics are something of a reversal of a downward trend in corporate insolvency numbers post-lockdown and have been driven by an increase in the number of Creditors’ Voluntary Liquidations and, to a lesser extent, Company Voluntary Arrangements. Read more