October’s Business Bail‑outs – A Chilling Snapshot
October saw 2,315 company insolvencies, a tidy 18% bump from the same month last year. That’s a lot more than the numbers we saw during the lockdowns when the government had a fire‑fighting budget in full swing.
What Makes Up the Numbers?
- 256 compulsory liquidations
- 1,889 creditors’ voluntary liquidations (CVLs)
- 146 administrations
- 23 company voluntary arrangements (CVAs)
- and 1 receivership appointment
Every category – except that single receivership – was higher than October 2023. The real driver? CVLs. Meanwhile, compulsory liquidations and administrations are climbing from the low points we hit right after the pandemic.
Voices from the Front Line
John Lamerton, a small‑biz writer at Big Ideas for Small Businesses, said, “Small businesses are dying, and it’s easy to see why: rising costs, a rough economy, and taxes that keep climbing. Small firms are dropping like flies, and if we’re not careful, we’ll lose our reputation as a once‑famous nation of shopkeepers.”
Alistair Hoyne, CEO of Finanze, added, “Company debt is on the rise and the ability to service it is shrinking. Businesses are still digging out of the Covid‑credit crunch. The extra cash from schemes like Bounce Back Loans feels like dead weight now – pulling firms underwater. Sole traders, SMEs, the cost‑of‑living crisis, and the war in Ukraine are piling on stress. The data shows more people are looking for debt help, but for many, it’s already too late. The debt industry is booming on this misery.”
Bottom Line
We’re seeing a steep climb in business failings, and the economy’s squeeze is still on. If we’re not mindful, the small‑biz spirit that once defined our country’s market streets could be lost forever.
