Insolvency experts anticipate a surge in the number of major companies facing bankruptcy in the upcoming year, attributing the risk to a “double whammy” of elevated borrowing costs and constraints on consumer budgets.
Administrators and restructuring specialists, in communication with the PA news agency, caution that even high-growth sectors like technology may not be immune to financial challenges.
This projection follows a challenging economic environment in the past year, leading to a notable increase in business collapses.
Official data from the Insolvency Service for the first 11 months of 2023 revealed a total number of company failures surpassing the entirety of 2022, Yahoo Finance reported.
Business failures have been further exacerbated by challenges faced in the hospitality and retail sectors, stemming from elevated energy prices, financial strain on consumers, and increased borrowing costs.
Approximately 17% of total insolvencies have been attributed to the hospitality sector, while retailers account for 14% of these failures.
Written by B.C. Begley
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B.C. Begley 