Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Higher costs trigger rise in insolvencies

by November 16, 2022
November 16, 2022
Higher costs trigger rise in insolvencies

Company insolvencies rose sharply last month as businesses were faced with higher inflation and an uptick in winding-up petitions from HM Revenue & Customs.

The number of corporate insolvencies increased by 38 per cent year-on-year from 1,410 to 1,948, according to figures from the Insolvency Service. The numbers were driven by 1,594 so-called creditors’ voluntary liquidations.

Compulsory liquidations rose by 357 per cent annually to 242. The service said that this was partly due to HMRC issuing more demands for repayment from companies.

The tax authority was barred from issuing winding-up petitions during the pandemic as businesses were forced to shut down by the government. However, these restrictions were removed on April 1 this year, leading to an increase in activity against companies.

David Hudson, restructuring partner at FRP Advisory, said: “Inflation is devastating margins and throwing into doubt historically sound business models, which is eating away at confidence, undermining recovery plans and, crucially, testing the resolve of lenders.”

Joules, the fashion retailer, became the latest casualty on the high street this week as it called in administrators at Interpath Advisory.

It had sought a bridging loan as it feared defaulting on a Barclays facility due at the end of the month, and it had approached strategic investors about a possible capital raise.

But Tom Joule, its founder, warned yesterday that the business had become too complex to pursue the cost savings required to secure the company’s future.

Nicky Fisher, vice-president of R3, the restructuring trade body, said: “The jury is still out on whether the Christmas trading period, which will include an unseasonal football World Cup, will lead to the traditional boom many businesses are hoping for, or whether disappointing sales over the festive period will lead to businesses turning to an insolvency process to resolve their financial issues.”

Read more:
Higher costs trigger rise in insolvencies

0
FacebookTwitterGoogle +Pinterest
previous post
Moët hails new ‘roaring 20s’ as wealthy drain stocks of champagne
next post
Pound hits three-month high against dollar as US inflation cools

You may also like

Government gives 14 SMEs £2.5M to accelerate their...

May 11, 2023

Scottish Power owner urges Labour to scrap Miliband’s...

March 10, 2025

Luxury cars ‘not immune’ as Bentley sees sales...

January 19, 2024

Plans to redevelop Cambridge shopping centre face rejection...

February 13, 2025

Bingo Reimagined: How Online Platforms are Innovating the...

May 24, 2023

Over 4,000 Brits tucked into their tax return...

December 27, 2024

Getting To Know You: Zoë Scorer, MD, Conscious...

July 23, 2024

Porsche sales defy economic gravity as luxury cars...

October 25, 2023

HSBC Fined £6.2 Million for Mishandling Customers in...

May 23, 2024

Lloyds CEO applauds Treasury move to tackle motor...

January 24, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025
    • Trump announces China will restart rare earth mineral shipments to US after productive call

      June 7, 2025
    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,558)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved