Insolvency cases expected to increase in 2018 warns ICAEW
Friday 27 April 2018, Insolvency statistics released today for Q1 2018 include an increase in retail insolvencies post-Christmas, due to consumers cutting down on spending in the New Year. There has also been an increase in manufacturers announcing production cutbacks and redundancies. ICAEW urges any companies facing difficulties to seek help as early as possible to help reduce the likelihood of facing insolvency.
Clive Lewis, ICAEW Head of Enterprise, comments:
“Insolvency figures for 2017 were relatively low in comparison to previous years, but this is not expected to continue throughout 2018. The Q1 figures are as anticipated, with the retail sector seeing more insolvencies in the New Year and we have also seen an increase in production cutbacks by many motor manufacturers which are likely to cause difficulties in their supply chains. It isn’t unusual for spending to slow following the Christmas period, but these figures are not expected to improve much for 2018 and with interest rates expected to rise in May, it is unlikely that consumer spending will increase significantly.
“With the current economic and political environment being so uncertain, it is important that if businesses think they might be facing a difficult period that they seek help immediately to assist through challenging times.”
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