Construction remains the most significant contributor to the insolvency numbers representing 14% of all insolvencies in June, however, in line with the overall trend, just 149 construction companies became insolvent, the lowest monthly figure in the three years we are tracking. On a year to date basis, it remains the sector with the highest number of insolvencies, with 1,602 companies becoming insolvent, representing 16% of the total.
Two sectors that traditionally see large numbers of failures are also worth examining and worth keeping under review. Wholesale & Retail saw an additional 110 companies become insolvent in June, bringing the year to date total up to 1,194 while 88 Hospitality businesses failed, bringing the sector’s total to a very similar 1,100 for the year. Taken together these sectors represent 23% of all insolvencies and with both areas particularly vulnerable to government lockdown measures and restrictions we can only expect additional failures as the year continues.