Analysis by Mazars shows a surge in corporate insolvencies, with a 30% increase in the last three months. Close to 6,000 firms have gone down in the period, up from 4,578 in the previous three months. There were 1,817 insolvencies last month, with this a 79% increase on the number recorded in May 2021.
Mazars said interest rate rises were a key factor as it means debts were harder to service. Rebecca Dacre, a partner at Mazars, said the figures suggest that “just as the cost-of-living crisis is hitting consumers, it is doing the same for businesses.” She added that businesses are “being hit from both sides” by rising costs and falling consumer spending. She noted that those that were already struggling have started to become insolvent, warning that figures pointing to an economic contraction “do not bode well for businesses that are close to the water line.”
Read more: City AM
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