Shocking corporate insolvency figures for March just published by the Insolvency Service have revealed the magnitude of the problems faced by businesses up and down the UK as the ending of the government’s support scheme for energy costs on 1 April 2023 approached. The comparisons with past business failures figures is sobering: March 2023 was up 38% on the previous
The economic news might not be as gloomy as a few months ago, but the UK’s GDP is flatlining and the IMF is predicting we will be one of the worst performers in 2023 among leading economies. Surely this is no time for ambitious expansion or opportunistic acquisitions? Or is it? After the challenges of the pandemic and the impact
The recent news that one of the UK’s best run and most respected businesses predicts that its sales and profits will fall back in 2023 will come as alarming news for even the most optimistic entrepreneur. Next has an abundance of buying power, economies of scale and the resources to invest in AI to improve efficiency – and still it
Having successfully navigated its way through the Commons, The Economic Crime and Corporate Transparency Bill is now passing through the Committee stage in the House of Lords, with a further three stages before it receives Royal Assent, later this year. The intention behind the Bill is to introduce wide ranging reforms to address economic crime and counter abuses of our
Fortunately, few people have any direct experience of a company failure. When they do, the priority ‘waterfall’ for distribution of what’s left in the pot after a business has gone through Administration or Liquidation comes as a mystery. In an ideal world, there would be enough money to go round, but, in reality, it is rarely that straight forward. Due
So far in our series on what a formal insolvency does to a previously solvent balance sheet and how it impacts stakeholder recoveries, we have looked at overall principles, shrinking non-current asset values, diminishing current asset recoveries and ballooning liabilities. Now we turn to the contentious issue of the cost of an insolvency process. Unfortunately, there is little understanding in
