Latest reports suggest that over 200 businesses in Northern Ireland became insolvent last year, which is a similar figure to the previous year. This is a sad reflection of the difficult trading conditions which have made life so difficult for so many businesses, large and small, right across the country.
Figures Come From The Insolvency Service
Here are some details on these figures, as copied from an article on the Irish News website by Gary McDonald. He writes that:
‘More than 200 businesses collapsed in Northern Ireland during 2023, figures from the Insolvency Service are expected to show next week.
‘That total is generally on a par with 2022, and comes as the removal of government support measures, compounded by increased interest rates, inflation-eroded margins and weak demand, pushes more firms to the brink.
‘In November alone, there were 26 company insolvencies registered in Northern Ireland, which was 30% higher than the same month a year earlier.
‘This was comprised of six Creditors’ Voluntary Liquidation (CVLs), which is a formal liquidation process which brings about the end of an insolvent company, 13 compulsory liquidations, five administrations and two Company Voluntary Arrangements (CVAs), where creditors are paid over a fixed period.
‘In total, 190 companies went over a cliff in the first 11 months of last year.
‘And when the December figures are released on January 16, it is likely to take the overall number to more than 200 (in 2022, the total number of business failures in Northern Ireland stood at 214).
Companies Being Affected By Multiple Economic Issues
‘In recent months, companies have been affected by multiple economic issues, including cautious consumer spending and rising costs.
‘And alongside these, requests for wage increases and higher energy bills are also hitting businesses hard.
‘Meanwhile there were 111 individual insolvencies in the north in November, bringing the total for the year so far to 1,126 – which is already more than the whole of 2022, when 1,062 people got into financial trouble.’
If you have a business that is having cash flow issues or you seem to be getting deeper into debt, if you haven’t spoken to an experienced accountancy team then now is as good a time as any to do so. We have an excellent track record in getting businesses back on track and solvent once more, so please get in touch with us by giving our office a call on 028 3752 2909.