Will company insolvencies continue to decrease?

Government insolvency data released this month showed a 43% decline in company insolvencies in August 2020 as compared to August 2019, continuing a trend seen in the statistics for the previous quarter. Stuart Evans, Head of Commercial Litigation at BLM, questions whether the tide will turn in the midst of Covid-19.

For the last month, government data revealed a fall in company insolvencies of some 43% compared to August 2019. Company voluntary liquidations were down by 39%, compulsory liquidations down by no less than 67%.

On the face of it, those are remarkable statistics given the deep economic impact Covid-19 has had, and reflected the trend seen in the previous quarter. With the impact of the coronavirus, and regular news of high profile casualties – on the High Street in particular – how can this be possible? Whilst this trend can be explained, it is not one that can continue for much longer.

Click here to read the article in full in AccountingWEB.

Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to clients of BLM. Specialist legal advice should always be sought in any particular case.

Who to contact


Partner , London

View full profile >