Richard Oddy, restructuring and insolvency (R&I) director with Azets in Yorkshire, comments on the June 2024 company insolvency statistics for England and Wales:

“Despite signs of optimism last month, company insolvencies in England and Wales reached 2,361 in June 2024.

“This represents a significant 16% increase from May 2024 and a 17% rise compared with the same month last year, which should be cause for concern as many businesses close out the first quarter of the financial year.

“Ongoing economic challenges are the primary driver of business failures. Inflation has dropped to 2% but it is expected that the Bank of England will once again hold interest rates, sustaining pressure on particularly vulnerable businesses in sectors such as construction, retail, and hospitality.

“These industries, which have seen the highest number of insolvencies, are grappling with reduced consumer spending, and increased operating costs. Additionally, the impact of supply chain disruptions continues to be felt, further straining financial stability.

“The increase in compulsory liquidations (302) and creditors’ voluntary liquidations (1,866) highlights the urgent need for businesses to seek professional advice early to explore restructuring options and mitigate insolvency risks.”

Azets has offices in Bradford, Leeds and York in Yorkshire where it employs 334 people.