August 2021 saw the total number of insolvencies fall by 8% compared to July. A total of 1,589 companies become insolvent, a decrease of 8% compared to last month (July) and a 7% increase compared to August 2020.
This decrease in the overall number of insolvencies undoubtedly reflects the particular circumstances resulting from the Covid-19 pandemic, and resulting lockdown. Many distressed businesses have managed to keep afloat by making use of the high level of government support available, and many may well have opted to file for an extension with Companies House. However, as government schemes come to an end and cash reserves become scarce, many businesses may struggle to stay afloat.
The total number of UK company insolvencies for the year 2021 rose to 11,703. This represents a 10% decrease when compared to the same period in 2020.