The Insolvency Service has released Q1 2018 company and individual insolvency statistics for England and Wales.

Below is a summary of the key findings:

Companies 

• The underlying number of insolvencies (excluding bulk insolvencies) increased in Q1 2018, to the highest quarterly level since Q1 2014.
• This was driven by a rise in underlying creditors’ voluntary liquidations, and compulsory liquidations. 

People

• Total individual insolvencies increased in Q1 2018, reaching the highest quarterly level since Q3 2012. 
• This was driven primarily by an increase in individual voluntary arrangements, which reached a record high, while the number of bankruptcies and debt relief orders also increased. 

Duncan Swift, vice-president of insolvency and restructuring body R3, says:

“Insolvency has risen up the agenda over the first quarter, with a roll-call of high-profile names – Carillion, Maplin, Toys R Us – entering a statutory insolvency procedure, and widely-reported restructuring efforts at a number of other chains, especially in the casual dining space. Crucially, any time a company encounters difficulties there is a ‘domino’ effect on its suppliers and customers who may face their own financial problems as a result of lost income or key supplies."

He went on to say that systematic changes within sectors, the rise of online shopping and sluggish productivity mean that “a lot of directors need to take a step back from their businesses to look at where their market is going, and what they need to do to prepare for structural changes".

Find out more at Gov.uk and R3