PwC comments on October's insolvency data

David Kelly, Head of Insolvency at PwC said:

“Today’s data shows there were 2,315 corporate insolvencies in October in England and Wales - an 18% increase on the same month last year and higher than pre-pandemic numbers, demonstrating the acute challenges facing companies today. Creditors' Voluntary Liquidations (CVLs) continue to dominate the insolvency landscape with more than 80% of insolvencies going down this route. This remains the most common insolvency process year on year.

“Continuing supply chain pressures, energy costs, inflation and the high cost of debt mean that many corporate balance sheets remain fragile - particularly those of smaller owner-managed companies. These continue to bear most of the pain, with 98% of insolvencies in October being for companies with turnover of less than £1 million.

“Although there was a 58% increase in companies with more than £1 million turnover going into an insolvency process in October 2023 compared with October 2022, the numbers are still relatively low, with less than 50 companies filing for an insolvency process in this turnover range. Engineering, business services, and hospitality and leisure continue to be the sectors facing the most pressure, with 70% of insolvencies coming from these three sectors. 

“Looking ahead, unfortunately we expect the number of insolvencies to remain high in the final months of this year, with no sector immune from the prevailing external challenges.”