Ailing North West businesses urged to act now amid peaking liquidations

By Azets

25 Jul 2022

shutterstock_1901019742-1.jpg

A leading restructuring expert is urging businesses struggling to meet financial repayments to seek help before the cash runs out, following the release of the latest official government insolvency statistics for June 2022.

Nicola Clark is head of restructuring at Azets in the North West, the UK’s largest regional accounting firm.

She believes new restructuring procedures introduced under the Corporate Insolvency and Governance Act 2020 (CIGA 2020) can present much better outcomes amid a growing number of liquidations.

Nicola Clark said: “Government insolvency statistics published over the past six months show liquidations peaking and almost no company voluntary arrangements (CVAs) – and very few administrations. This is not good as liquidations are an end-of-life process.

“Most at-risk are businesses that are extensively geared or have fixed rate deals coming to an end, with protective covid measures being withdrawn coupled with the increased cost-of-living and ongoing supply chain issues slowing economic recovery. It’s also apparent the investor community is becoming more cautious.”

Insolvency statistics for June 2022 show 1,691 registered company insolvencies, 40 per cent higher than June 2021 (1,207) and 15 per cent higher than pre-pandemic levels (1,467 in June 2019).

There were 1,456 Creditors’ Voluntary Liquidations (CVLs), 30 per cent higher than in June 2021 and 44 per cent higher than June 2019. There were 3.6 times as many compulsory liquidations in June 2022 as in June 2021.

Nicola Clark says companies on LIBOR plus interest rates have been immediately impacted by the Bank of England’s latest interest rates hike to 1.25 per cent but says more companies and jobs can be saved if business leaders act early.

She said: “The impact of rising interest rates on UK businesses is going to be seismic, with liquidations already peaking before the Bank of England raised interest rates to 1.25 per cent and a likelihood they will keep rising.

“The challenges facing businesses are significant and whilst nobody can magic away what’s coming, more businesses and jobs can be saved using these new procedures.

“Insolvency inevitably means some creditors will lose money – that is the downside of a market economy – however, where a business can be salvaged via a pre-pack administration, a restructuring plan, or a CVA, jobs will be saved and there will be a revitalised entity to trade with on the other side.”

She added: “The UK is blessed with a highly regulated and skilled population of restructuring advisors, armed with brand new tools – but with a lead time of at least 12 weeks, it’s critical to take swift and decisive action early and not wait until the bank account is empty.

“It is incumbent on business leaders to consult as early as possible, and on advisors to use the new procedures as imaginatively as possible, preserving value and keeping people in jobs that might otherwise be in jeopardy.”

Latest news

1

Three weekly domestic waste collection considered in plans Waste recycling Blackpool

Three weekly domestic waste collection considered in plans

01 Jul 2025

2

Graham Engineering confirms acquisition to a2e Industries Graham Engineering

Graham Engineering confirms acquisition to a2e Industries

01 Jul 2025

3

Training 2000 celebrate 'Good' rating by Ofsted Training 2000

Training 2000 celebrate 'Good' rating by Ofsted

01 Jul 2025

4

Fox Group acquires J Fisher and Sons Colin Fisher, Paul Fox CEO and Gary Fisher.

Fox Group acquires J Fisher and Sons

01 Jul 2025

5

Beever and Struthers strengthen leadership team with new partners Dean Curtis and Joe Diston

Beever and Struthers strengthen leadership team with new partners

01 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin