UK Insolvencies Fall to Record Low in 2021 - Interpath
(11 January 2022 – United Kingdom) A record low number of British firms fell into administration in 2021 despite the heavy toll of the pandemic according to insolvency industry experts Interpath Advisory.
Figures from the insolvency group revealed that although administrations remained depressed there has been a steady rise in creditors’ voluntary liquidations which have risen to levels not seen since long before the pandemic.
The latest data from the advisory firm revealed 618 administrations in the United Kingdom (UK) as of November 2021. While this was expected to increase by the end of Q4 2021, it will fall considerably short of the 1,121 from full year 2020 and the record low of 1,044 in 2015.
“Extensions to financial support measures, including furlough, meant much fewer companies collapsed than expected at the start of the year. It hasn’t been how we would have predicted this time last year” commented Interpath CEO Blair Nimmo.
“Assumptions were based on the fact the support would phase out as originally planned, so in the end we had much less insolvency activity in the second and third quarters than we would have thought. Personally, I think furlough was the biggest single factor. Obviously other supports all had their impact, but the continued extension helped a lot of firms keep their heads above water.”