Insolvencies rising fast but is it a blip?
Business failures at the highest rate since 2009 is not exactly cheerful news but the question is whether its a pattern going forward or a temporary blip in the statistics?
The insolvency bodies and firms who produce these statistics often back them up with their assessment of how many businesses are effectively insolvent or barely surviving anyway but then again it could be rather seen as akin to Funeral Directors gleefully warning about an outbreak of the Black Death or Ebola
That maybe unfair and i’ve had the pleasure of meeting both the past and current very personable heads of R3 (the insolvency body) and wouldn’t doubt their professionalism
Yesterday I was informed that one of my debtor finance clients had ceased trading. A high end kitchen ware manufacturer with quite a long history and very good products (I know because i’ve bought them) I cannot disclose the identity because its not in the public domain but its always sad to see this type of business fail. The last filed accounts demonstrated a deteriorating balance sheet. Kitchenware was all the rage during lockdowns and and perhaps a slump in turnover was predictable as well the impact of energy costs
My sense that this was a spike in insolvency numbers but the numbers will remain quite high for some time to come.
Lets see
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