Company Insolvency Statistics for July 2020 show a continued Decline
Since the start of the Coronavirus crisis, the Insolvency Service has been issuing monthly statistics in addition to the usual quarterly reports in order to provide more timely indicators of the impact that COVID-19 is having on insolvencies.
Company Insolvencies in July
In July 2020 there were 955 company insolvencies in England & Wales, broken down as follows:
- 590 creditors’ voluntary liquidations (CVLs)
- 166 compulsory liquidations
- 182 administrations
- 17 company voluntary arrangements (CVAs)
These figures are slightly higher than those reported in June, but nevertheless represent a 34% drop in volumes compared with the same period in 2019.
CVLs were down by 41% and compulsory liquidations down by 34% when compared with July 2019, although both figures were up on the previous month. In fact the number of compulsory liquidations was almost twice that recorded in June, and this is likely to reflect the fact that more courts are re-opening and clearing a backlog of cases.
It is difficult to say for certain if these figures indicate that corporate insolvencies will now steadily increase from their low point, or whether it is just the effect of monthly variations. August is typically a low month due to the holiday season so we would expect to see a further drop in the figures.
Detailed figures provided by the Insolvency Service can be found here: July Insolvency Statistics