The Insolvency Service has released the insolvency statistics for Quarter 2 – April to June 2016.
The statistics revealed that the total number of company insolvencies were lower than the previous quarter and has also decreased on the year. An estimated 3,617 companies entered insolvency during Q2, four per cent lower than Q1 and almost three per cent lower than Q2 in 2015. The decrease is believed to be mainly driven by the decrease in compulsory liquidations. A total of 662 companies were subject to compulsory winding-up order, an 18 per cent decrease on Q1 and an estimated 2,501 companies entered creditors’ voluntary liquidation in Q2, a two percent decrease on the previous quarter. There were approximately 340 administrations in Q2 this year, an increase of eight per cent compared to the Q1 but eight per cent lower than the same quarter in 2015.
The full report can be found on the Office of National Statistics website.