Restructuring body responds to September 2021 insolvency figures

The insolvency and restructuring trade body R3 has responded to September’s national insolvency figures.

Corporate insolvencies increased by 7.2 per cent in September 2021 to a total of 1,446 compared to August’s figure of 1,349, and increased by 55.8 per cent compared to September 2020’s figure of 928.

Personal insolvencies rose by 9.2 per cent to 9,954 in September 2021 compared to August’s figure of 9,118, and were 33.2 per cent higher than September 2020’s figure of 7,471.

Eleanor Temple, chair of R3, said: “The monthly increase in corporate insolvencies was driven by a rise in Creditors’ Voluntary Liquidations, which increased for the third consecutive month.

“This suggests that directors are choosing to close their businesses after deeming their financial survival unlikely after 18 months of trading through a pandemic.

Eleanor continued: “Despite the fact that businesses have benefitted from two months of restriction-free trading and the economic boost over the summer, conditions are still not back to where they were before the pandemic.

“When it comes to personal insolvencies, the increase between August and September was driven by a rise in Individual Voluntary Arrangements and DROs.

“This suggests that more people are in debt and taking steps to resolve the issues they face with their finances, but also that the situation is still tough out there for people in England and Wales.

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