Insolvency and restructuring trade body, R3, released a new report which shared that in 2019 the profession rescued 7,200 businesses and saved 297,000 jobs.
In total, 60,000 businesses were advised by those within the sector, in 2019, regarding insolvency and restructuring matters. It was found that of those advised, 39% of businesses (4 in 10) remained in operation after the conclusion of the insolvency procedure used.
There were five sectors seen to most commonly enter an insolvency procedure: retail; construction; accommodation and food services; professional, scientific and technical; and production.
In terms of the insolvency procedures used, it breaks up into the following: 55% creditor voluntary liquidations, 33% administrations, 7% compulsory liquidations and 5% company voluntary arrangements.
The top reasons for the struggles of such companies were management failure, financial issues, market loss and knock-on effect from the failure of another company (within/not of its supply chain).
From the corporate insolvencies, an estimated total of £353 million was returned to creditors. Interestingly, 11 % of the cases of corporate insolvency involved some sort of fraud or criminal activity.
Aside from corporate rescues, the profession also helped to save 144,000 individuals in 2019 with an average of £13,300 returned to creditors upon completion of every personal insolvency procedure.
Read more here.