According to the latest research by accountancy firm KPMG the number of companies in administration in 2019 rose by just under 5% due mainly to a rise in insolvent construction and building companies. 1,403 firms entered administration last year compared to 1,341 in 2018.
Another sector that was hard hit was the retail and real estate sector. This has been blamed on the uncertainty of brexit and the desire to hold back on big ticket purchases.
Despite the UK "high street crisis", the number of retailers entering administration fell in 2019 from 170 to 133. This statistic does not include CVAs which were a big feature in 2019. Karen Millen, Jack Wills and Bonmarche were among the fashion brands to collapse last year.
KPMG head of restructuring Blair Nimmo said: “2019 was a year characterised by profound political and economic uncertainty, with consumer confidence remaining fragile and companies continuing to bear the brunt of rising overheads and increased costs.''
“While many businesses battened down the financial hatches, adopting a prudent and cautious strategy, for some, the challenging trading conditions proved to be a bridge too far.”
2020 will certainly be interesting for the economy as we enter the next phrase of Brexit and the slow down in the Global economy.