NEW figures have revealed a sharp increase in the number of businesses becoming insolvent in the first three months of this year.

The Insolvency Service reported that there were 4,187 company insolvencies in the quarter.

This represents is 6.3% increase in insolvencies compared to the final quarter of last year.

And put side-by-side with the same post-Christmas quarter last year, this shows a rise of 5.1%.

What’s more, these latest insolvency figures signal the second highest underlying level of insolvencies in any quarter for five years.

Insolvency analysts said the performance was a further red flag sign that businesses had struggled financially in the run-up to the original March Brexit deadline

This 2019 rise was driven by increases in Creditors’ Voluntary Liquidations (CVL), where shareholders of an insolvent firm take action to close their company. These soared by 6.2% compared to the previous quarter.

Administrations, when a company is placed under the control of insolvency practitioners, such as Walsh Taylor, while rescue strategies are investigated, rocketed by no less than 21.8% to a five-year peak.

Company Voluntary Arrangements (CVA) also posted an eye-watering rise of 43.1%.

However, compulsory liquidations dipped in the first quarter by 2.7%.

The sector most at risk of entering the insolvency zone was the beleaguered wholesale and retail trade; while companies involved in the repair of vehicles witnessed the largest spike in insolvency ill-health.

Insolvency victims were also high in administrative and support services; manufacturing; and the accommodation and food services sector.

On the plus side, the arts, entertainment and recreation industry witnessed the largest fall in underlying insolvencies.

Looking at the whole of the past twelve months, the highest number of new company insolvencies remains in the construction industry with 3,013 insolvencies – up 0.6% compared to the previous period.

The Insolvency Service also reported that there were 31,527 individual insolvencies the first quarter of 2019 – 8.1% lower than last year’s comparative total. This was largely driven by a decrease in Individual Voluntary Arrangements (IVA).

There was also better news for the self-employed, who saw the number of bankruptcies drop by almost 10% compared to the previous quarter.

For more information about the work of our licensed insolvency practitioners and businesses recovery teams in Leeds, Bradford, Harrogate and Darlington, please call us on 03300 244 660 or email confidential@walshtaylor.co.uk

Mary Taylor
Director

Mary began working in insolvency for a national accountancy practice in Glasgow thirty years ago and worked in most divisions of the insolvency department.

She then moved to a smaller firm so she could advance her knowledge on a more hands on basis. She moved back to Leeds in 1987 and commenced working with a small firm of accountants and subsequently made partner.

She left in 1999 to set up her own practice, McCann Taylor.
McCann Taylor became involved with the consumer market both in England and Scotland.

Mary sold McCann Taylor in March 2007 and formed Walsh Taylor to concentrate on helping businesses experiencing financial difficulties.

Kate Ellis (neé Breese)
Director

Kate has worked in insolvency since 2001 starting out at a firm of solicitors in Leeds and latterly gaining positions within two national accountancy firms.

During this time Kate gained extensive experience in all aspects of personal and corporate insolvency, for the first part of her career specializing in personal insolvency and latterly corporate.

Kate has been with Walsh Taylor since its incorporation in September 2008, being promoted to Director in January 2010.

Kate is CPI and JIEB qualified, is experienced in a variety of industries and sectors and is the firm’s joint appointment taker.

Meg Heath
Director

Meg has a background in supporting SMEs, including the raising of finance and advising on organisational change. She is a non-executive director of companies in the private and third sector, including Walsh Taylor.

Previously she was Deputy Fund Director of one of the largest CDFIs in the UK, and has experience of the social enterprise, charity and private sectors. Her experience of assisting companies to survive and thrive has been gained across a broad range of sectors and in companies of all sizes.

In addition to her work at Walsh Taylor she works for other private companies, including non-executive and trustee positions.

Emma Mifsud
Director

After graduating from Leeds University in 2005 with a BA Hons degree in Criminology, Emma worked for a regional law firm in both the property department and insolvency and banking department. Whilst doing so Emma gained a Graduate Diploma in Law at BPP University.

Emma then joined a national accountancy firm in 2009 gaining experience in personal insolvency before moving to a Leeds based firm. At this firm Emma specialised in bankruptcies, IVA’s and negotiating informal agreements with creditors. In 2013 Emma gained her CPI qualification.

Since joining the firm in December 2013, Emma has taken on a portfolio of personal and corporate insolvency cases to extend her knowledge and expertise in all areas of insolvency.

In December 2017 Emma become a licensed appointment taker under the Insolvency Practitioners Association, she is JIEB qualified.

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