Overview
Here you will find all the latest details on company insolvencies across the UK and including Northern Ireland. This page is updated on a monthly basis and provides details on company insolvencies by month and sector since 2018. For real-time insight and alerts about company insolvencies please consider subscribing to the Creditsafe platform.
Key findings for July 2021:
- A total of 1,724 companies became insolvent in July 2021.
- The total number of insolvencies increased by 1.71% compared to last month (June 2021).
- The total number of insolvencies increased by 11.37% compared to July 2020.
- 16% of insolvencies came from within the Construction sector.
If you want to re-use this data please contact press@creditsafeuk.com
Insolvencies by Month
Total number of insolvencies by month.
July was the third month in a row where the total number of insolvencies increased compared to 2020. A total of 1,724 companies become insolvent, an increase of 1.71% compared to last month (June) and an 11.37% increase compared to July 2020.
This steady increase in the overall number of insolvencies year-to-date undoubtedly reflects the particular circumstances resulting from the Covid-19 pandemic, and resulting lockdown. Many distressed businesses have managed to keep afloat by making use of the high level of government support available, and many may well have opted to file for an extension with Companies House. However, as government schemes come to an end and cash reserves become scarce, many businesses may struggle to stay afloat.
The total number of UK company insolvencies for the year 2021 rose to 10,114. This represents a 1.16% increase when compared to the same period in 2020.
Insolvencies by Sector
The total number of insolvencies by sector YTD.
The construction sector remains the most significant contributor to the insolvency numbers representing 16% of all insolvencies in July 2021, with 271 construction companies becoming insolvent. Year to date, construction accounts for 14.75% of all company insolvencies in 2021.
Two sectors that traditionally see large numbers of failures are also worth examining and worth keeping under review. Wholesale & Retail saw 175 companies become insolvent in July, while 187 Hospitality businesses failed. Taken together these sectors represent 20% of all insolvencies and with both areas previously vulnerable to government lockdown measures and restrictions we may continue to see similar levels of failures throughout 2021.
The table below shows the total number of insolvencies year-to-date (January - July 2021) by sector. It also includes the % share of insolvencies for 2021 and the % change compared to the same period in 2020, 2019 and 2018.
Want to explore the data for yourself?
Whether you want to understand the impact of Insolvencies across a group of sectors or the likelihood of an individual company becoming insolvent, you can find all of this data and more within the Creditsafe platform.
Methodology
Creditsafe uses the following statuses to determine if a company has become insolvent and will count insolvency based on its first insolvency trigger from one of the statuses below:
- In Liquidation.
- Administrator Appointed.
- Appointment of Liquidator.
- Meeting of Creditors.
- In Administration.
- In Receivership.
- Administrative Receiver Appointed.
- Administration Order.
- The company is wound-up.