Regulator intervention and government stimulus packages in response to market shocks often mask underlying systemic distress and disrupt economic cycles. With companies now largely weaned off COVID-19 support packages, insolvencies have significantly increased.
In May 2024, a further 992 companies entered external administration (or had a controller appointed), totalling 9735 this financial year; a ~14.5% increase on the same period in 2023 with March, April and May all seeing the largest number of monthly insolvencies since October 2015. It appears that we are on track to exceed 10,000 insolvency appointments this financial year. This would be highest number since 2012-13 (following the Global Financial Crisis).
In line with the…
