Could 2022 see new records for company insolvencies?

August 3, 2022     |     Posted by:     |     Category: Blog, Company Liquidation, News

The latest company insolvency statistics have been released by The Insolvency Service, covering April to June 2022. Without much surprise, registered company insolvencies are on the increase.

In fact, they are now higher than pre-pandemic levels. In Q2 2022, there were 5,629 company insolvencies. In Q4 2019 company insolvencies reached 4,284.

The numbers in detail

In Q1 2022, we saw company insolvencies start to increase, a natural response as the temporary COVID support measures came to an end (or were tapered off) on 30 September 2021.

Q2 2022 has seen an increase of 13% compared to Q1, and 81% higher than the same quarter last year.

Total company insolvencies Compulsory liquidations CVLs Administrations CVAs Receiverships
2021Q2 3,105 102 2,813 164 25 1
2021Q3 3,933 113 3,632 168 20 0
2021Q4 4,625 158 4,161 273 33 0
2022Q1 4,995 339 4,359 272 25 0
2022Q2 5,629 368 4,908 320 32 1

Source: The Insolvency Service


Creditors’ voluntary liquidations (CVLs) are the most common

Of the registered company insolvencies in the quarter, 87% of them were Creditors’ voluntary liquidations or CVL. This is where the company directors have taken the necessary steps to place the company into liquidation, as opposed to being forced to do so. Compulsory liquidation made up 7% of cases and administrations 6%.

What we’re observing

We’re certainly seeing increased numbers of company directors taking the future of their company back into their own hands. By that we mean that they’re no longer ‘waiting to see what happens’, hoping for a change in odds against them. It may not be the outcome that they wanted but considering all the factors, they know it’s the right decision.

The alternative is that they continue to soldier on, most likely struggling to keep any of their creditors happy. But the end will be the same – just more stressful and unpleasant if it’s the creditors leading the company closure.

The typical scenarios we’re dealing with are companies most significantly hit by the COVID pandemic (hospitality, retail etc) where despite best efforts to adapt to social distancing measures, trading levels have not returned to what they were. Add to that increased material costs and the cost of living crisis, the numbers aren’t enough to sustain the company going forward. Customers aren’t in a position to accept increased costs – they’d rather go without.

Commenting on the latest stats, Insolvency Practitioner Matt Hoy said:

“Company directors are now in the position where problems can’t continue to be ignored. Instead of burying their head in the sand they are accepting the situation for what it is and taking positive action by speaking to an insolvency professional.

It isn’t an easy decision to make. Some companies actually grew through the pandemic – anything DIY or home related for example. There was a boom whilst we were locked down at home, but now things have opened up more and life is gradually returning to what it was like before 2020, people are spending their money elsewhere – if they have money to spend.

Liquidating an insolvent company isn’t failure. The pandemic wasn’t anything you can predict or account for. Being proactive, accepting the situation and seeking professional advice is the best decision any company director can make.”


193,000 have now defaulted on Bounce Back Loan repayments

The British Business Bank recently published data to show that 193,000 businesses have not kept up with their BBL repayments (up to the end of June 2022).

151,000 are more than 90 days behind with their repayments.

Falling behind with creditors is difficult to sustain for a long period of time, and we would urge any business who has defaulted on a BBL repayment to get in touch with us as soon as possible.

Contact the team today on 0808 196 8676 or email

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