Professional services (Includes Accountants, Solicitors, Advertising, Architectural and other professional business services) move into the most significant contributor to the insolvency numbers representing 15% of all insolvencies in December, with 270 companies becoming insolvent. On a year to date basis, construction remains the sector with the highest number of insolvencies, with 2,747 companies becoming insolvent in 2020, representing 14% 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 162 companies become insolvent in December, bringing the year to date total up to 2,057 while 148 Hospitality businesses failed, bringing the sector’s total to a very similar 2,017 for the year. Taken together these sectors represent 20% of all insolvencies and with both areas particularly vulnerable to government lockdown measures and restrictions we can only expect similar levels of failures throughout 2021.