Businesses in England and Wales are in great difficulty
British and Welsh companies are experiencing real difficulties, or business failures are accelerating with more than 38% in October over one year in England and Wales, amid the cost of living crisis, said Tuesday, November 15, the British specialized agency Insolvency Service.
October 2022 is a bright red month, with more than 1,948 recorded last month; business failures also accelerated compared to September (1,684).
Compared to October 2019, before the COVID-19 pandemic, they are also up a strong 32%.
Chapter 7, dismantling the remaining assets of a company that has filed for bankruptcy after failed takeover or restructuring attempts, meanwhile quadrupling year-over-year to 242, Insolvency Service’s monthly report continues.
Nick Fisher, vice president of R3 Restructuring Service, points out that “the current outlook is challenging for many companies as costs rise and consumer confidence remains low.” “Concerns about food and fuel prices as winter approaches mean that many people are saving and not spending, and as a result, a whole range of businesses are struggling,” he adds.The week started very severely with the announcement that the British clothing company was filing for bankruptcy after running out of cash, falling victim to the cost of living crisis, and with 1,600 jobs at risk. Last week, the furniture company, Made.com also went bankrupt, with less than 400 people laid off.
In addition, inflation is reaching 10% in the country, and rising costs are weighing on business activity and confidence indicators in the economy.
Across the UK, gross domestic product contracted in the third quarter of 2022, and the Bank of England is forecasting a recession that could be the longest known in the country.