The level of corporate distress is rising as businesses face “persistent economic challenges” before a sharp increase in labour costs.
The number of company insolvencies rose 11 per cent year-on-year to 1,971 across England and Wales last month, according to data from the Insolvency Service. It was the highest level registered in January for more than five years.
Tim Cooper, president of R3, the insolvency and restructuring trade body, said the increase showed that businesses were choosing to shut their doors owing to “years of challenging trading conditions” and before a rise in costs from the increase to employers’ national insurance contributions and to the national minimum wage.
Oliver Wright, senior managing director in the…
