There have been 277 business insolvencies in Wales since March 2020, according to new figures
A new report reveals there have been 277 insolvencies in Wales since March 2020.
Business Rescue Expert has analysed data from the past 12 months to reveal the Year of Lockdown report, which reveals the state of businesses, the liquidation rate and the sectors and regions most likely to undergo an insolvency event.
https://www.businessrescueexpert.co.uk/2020-a-year-of-lockdowns/
The table below shows the number of businesses registered in each region, the total number of business insolvencies and the Corporate Insolvency Ratio for each.
|
REGION |
Active Companies in 2020 |
Total Insolvencies |
Corporate Insolvency Ratio (per 10000 companies) |
|
Yorkshire & Humber |
189,000 |
1,642 |
1 in 115 |
|
North West |
267,000 |
2,130 |
1 in 125 |
|
North East |
71,000 |
426 |
1 in 167 |
|
West Midlands |
222,000 |
1,285 |
1 in 173 |
|
London |
531,000 |
2,874 |
1 in 185 |
|
East Midlands |
184,000 |
737 |
1 in 249 |
|
East of England |
271,000 |
1,016 |
1 in 267 |
|
Scotland |
178,000 |
649 |
1 in 274 |
|
South West |
236,000 |
782 |
1 in 301 |
|
South East |
418,000 |
1,308 |
1 in 319 |
|
Wales |
106,000 |
277 |
1 in 382 |
|
Northern Ireland |
75,000 |
148 |
1 in 506 |
The figures show that a business in the Yorkshire and Humber region of England was statistically most likely to undergo an insolvency event than in any other region (1 in 115) while a company based in Northern Ireland would be least likely (1 in 506).
The total number of corporate insolvencies actually fell in 2020, to their lowest recorded levels since 2007. The main reasons are the variety of Government-backed Covid-19 support measures.
There have been 8,205 company insolvencies from March 2020 to January 2021. Broken down by sector they were:
|
Sector |
Number of insolvencies* |
|
Construction |
1,634 |
|
Hospitality |
1,378 |
|
Retail |
1,355 |
|
Administrative & Support |
1,200 |
|
Manufacturing |
930 |
|
All others |
1,708 |
* (March 2020 – January 2021)
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The construction industry has been hit the hardest, the halting of various building projects, both large and small scale, badly damaged the construction industry resulting in 1,634 construction company insolvencies.
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The hospitality industry was hit the second hardest, with restaurants and bars being closed at short notice and for long periods, resulting in 1,378 insolvencies.
Chris Horner, Insolvency Director with Business Rescue Expert said:
“Ominously, even with restrictions being lifted and economic activity rising, 2021 will be a worse year for insolvencies in several industries than the year of lockdowns was. Government support in the form of backed loans, furloughs and the temporary ban on winding-up petitions and other creditors actions are all expected to end sometime in 2021.
“Bounce Back Loan repayments and others will begin to come due, businesses will have to decide if they can re employ or redeploy their furloughed workers and creditors that have been under severe financial pressure themselves will finally have the ability to look for repayments that might be critical to their own survival.”
To view the full report please click here