In the first quarter of 2022, the UK recorded its highest insolvency levels for more than 60 years. The surge in business closures as a result of the Covid-19 pandemic witnessed some 5,000 business insolvencies, more than double the number during the first quarter of 2021, according to the Insolvency Service. The number of insolvencies was driven by a rise in voluntary liquidations, which increased by an annual rate of 117% to about 4,300.
Meanwhile, in Q1 some 137,000 UK businesses closed, which was a 23% increase on the same period for 2021 (these companies had ceased trading rather than become insolvent), according to the Office for National Statistics.
The reasons for what’s being termed the “perfect storm” in business closures and insolvencies in the UK is the ending of government support measures, soaring energy costs because of the war in Ukraine, supply chain disruption and a sharp decline in consumer confidence.
In this publication, IR Global members discuss the issues involving distressed businesses in their jurisdiction. They give an overview of the post-pandemic business climate and then expand on their version of Chapter 11 and how distressed businesses are helped in their jurisdiction.
Finally, they give invaluable tips to business people on how to avoid bankruptcy and what to do if their business is in crisis.
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