More East bosses liquidate businesses as pressures mount

Regional trade body R3 Eastern said corporate collapses were hitting a year-on-year high as firms faced "a perfect storm" of economic turmoil and were increasingly leant on by creditors pursuing debts.

Monthly statistics released by the Insolvency Service on January 17 showed corporate insolvencies in England and Wales rose by 32% in December to 1,964 compared to December 2021 - when there were 1,489 recorded.

The figure was also 76% up on pre-pandemic December 2019 when there were 1,119 insolvencies recorded.

R3 Eastern chairman Alistair Bacon, founding principal at AMB Law in the region, urged companies in trouble to speak to professionals as early as they could.

"The monthly corporate insolvency figures have increased compared to last year and three years ago due to rises in Creditor Voluntary Liquidations and Compulsory Liquidations," he said.

"This means that many company directors are choosing to close their businesses, no longer willing to combat insurmountable economic challenges such as low consumer confidence, rising costs and requests for increased wages.

"Changes to legislation have also given greater powers to creditors to recover monies owed to them, contributing to a rise in the number of companies in compulsory liquidation.

"The beginning of the year is a critical period for many companies, and R3 urges anyone who is anxious about their business or personal finances to seek advice as soon as possible.

"While it is incredibly hard to voice financial fears, having that conversation with a qualified adviser as soon as problems arise could lead to better outcomes than waiting until they become more severe.

"Most R3 members will give an hour’s free consultation to potential clients to enable them to understand more about the circumstances of the business, and to outline the options available to help them improve their situation."