Monthly Insolvency Statistics: November 2023

Published on : 22nd December, 2023 | Updated on : 20th August, 2024

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Research and Statistics

The monthly insolvency statistics have been released for the month of November 2023. In this article the findings will be explored.

Company Insolvencies

November 2023 saw 2,466 registered company insolvencies through England and Wales. This is an increase of 21% when compared to the amount registered in the same month of 2022. This is also higher than figures during the pandemic and pre-pandemic.

The company insolvencies consisted of:

1,962 Creditors Voluntary Liquidations (CVLs)
359 Compulsory Liquidations
133 Administrations
12 Company Voluntary Arrangements (CVAs)

There were no receiverships registered.

CVLs (23% higher in Nov-23 than Nov-22) and Compulsory Liquidations (22% higher in Nov-23 than Nov-22) appear to be the drivers of the increase in company insolvencies, compared to November 2022. Although CVAs also did see a 20% increase. Administration levels were similar to what it was in November 2022.

Between 26 June 2020 and 30 November 2023, 47 moratoriums were obtained in England & Wales, along with 22 companies having a restructuring plan registered at Companies House.

Moving on to the statistics for Scotland and November 2023 saw 109 registered company insolvencies. This is made up of 74 CVLs, 30 compulsory liquidations and 5 administrations. No CVAs or receiverships were recorded.

Historically, compulsory liquidations have led the way for the company insolvencies in Scotland. But in the first 11 months of 2023 CVL numbers remained more than 1.5 times higher than compulsory liquidation numbers.

Between 26 June 2020 and 30 November 2023, no moratoriums were obtained for companies in Scotland. Two companies did register a restructuring plan at Companies House.

For Northern Ireland, 26 company insolvencies were registered in November 2023 – this being 30% higher than that in November 2022. Registrations consisted of 13 compulsory liquidations, 6 CVLs, administrations and 2 CVAs. No receiverships were recorded for this period.

Individual Insolvencies

England and Wales had 8,243 Individual Insolvencies registered in November 2023. This is 21% less than what was registered in November 2022. It is thought that the reason for the decline is the lack of IVAs, as DROs and bankruptcies increased.

Delving deeper, the registrations are broken up into:

4,292 Individual Voluntary Arrangements (IVAs) – 44% lower than in November 2022
3,290 Debt Relief Orders (DROs) – 45% higher than in November 2022
661 Bankruptcies (split as 522 debtor applications and 139 creditor petitions) – 18% higher than in November 2022.

Northern Ireland had 111 Individual Insolvencies registered in November 2023. Numbers are made up of 70 IVAs, 21 DROs and 20 bankruptcies. Total numbers are 24% lower than the same month a year previous.

Read the full report here.

Monthly Insolvency Statistics: January 2025

19th February, 2025 in Research and Statistics

After seasonal adjustment, 1,971 companies became insolvent in January 2025, up 6% from December 2024 and 11% from January 2024. After three years, the average absolute change between consecutive months has been 12%.After declining in the early 2000s, company insolvencies soared during the 2008-09 crisis. Government support measures during the COVID-19 epidemic in 2020 and 2021 reduced monthly volumes to their lowest ever. Creditor Voluntary Liquidations (CVL) numbers rose above pre-pandemic levels in 2022, although compulsory liquidations and administrations remained low. CVLs reached a record high and compulsory liquidations matched 2015-19 levels in 2023, bringing insolvency numbers to a 30-year high. The 2024 total was slightly lower than 2023 because CVLs decreased more than other insolvency categories.Figure 2: Company insolvencies during the second half of 2022 have reached 2008-09 recession levels. English and Welsh monthly firm insolvencies by type, January 2000–January 2025, seasonally adjusted.CVLs CVLs represented 78% of company insolvencies in January 2025. CVLs rose 9% from December 2024 and 14% from January 2024 after seasonal adjustment. Compulsory liquidations The seasonally adjusted number of compulsory liquidations in January 2025 was 5% fewer than in December and January 2024. Administrations January 2025 saw 10% more administrations than December 2024 and 9% more than January 2024 following seasonal adjustment. CVAs The number of CVAs decreased by 13% in January 2025 compared to January 2024 and 18% from December 2024. Numbers remain low compared to historical levels. There were 9% more CVAs in 2024 than in 2023 and approximately 80% more than in 2022, which had the lowest yearly total since 1993. Despite this increase, 2024's number was just under 60% of the 2015–2019 average.

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Monthly Insolvency Statistics: January 2025

In The Style in Administration Rumours

13th February, 2025 in A guide for redundant employees in administration or insolvency situations Retail What Does Going Into Administration Mean?

In Less than two years after the online fashion store, which was then listed in London, was forced to sell to a family office investor in a fire sale, In The Style is on the verge of going into administration.According to information obtained by Sky News, FTS Recovery is being considered to serve as the company's administrator. Adam Frisby launched the business in 2013.The fast-fashion store has suffered a decline in its financial performance in recent years, despite aligning itself with several well-known social media influencers.The future of its remaining employees, as well as its brand and other assets, will be uncertain following its collapse into administration.According to one source, the process could result in a pre-pack administration that involves Baaj Capital.Before announcing his most recent departure last year, Mr. Frisby made at least two appearances back at the company.In March 2023, Baaj Capital purchased In The Style, which had previously been valued at over £100 million, for just over £1 million.In 2019, it went public on the junior AIM market in London.

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In The Style in Administration Rumours

Royal Stafford Pottery Goes Bust

4th February, 2025 in A guide for redundant employees in administration or insolvency situations What Does Going Into Administration Mean?

Royal Stafford based in the Royal Overhouse Manufactory, one of the oldest pottery factories in Burslem has collapsed into liquidation. The Stoke-on-Trent pottery business employed some 70 people.The Royal Stafford brand was established in 1845 and the firm described itself as one of the handful of potteries with all production taking place in England."This must be a wake-up call for decision makers," said Colin Griffiths, GMB senior organiser. "The loss of Royal Stafford is a huge blow to workers and the entire community here in Stoke."Our city cannot power its kilns with wind and batteries; wishful thinking means spiralling energy costs are now pushing the sector over the edge."Meanwhile the illegal importing of foreign forgeries is out of control and driving down orders even further."Our ceramic and pottery industry is vital for economic growth and supports thousands of jobs across the UK."The time for warm words is over, now we must see action." Why has Royal Stafford gone into liquidation rather than administration? The most probable reason is simply that there was unlikely to be any buyer for the business. For a company to go into administration the insolvency practitioners have to show that the return to creditors would be better in administration than in liquidation ie "a better result". Administration can be expensive so there has to be a reasonable prospect of this.

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Royal Stafford Pottery Goes Bust