The number of insolvencies has fallen, despite the headwinds of higher interest rates and rising costs.
But administrations have shot up by more than half and compulsory liquidations have almost doubled.
The total number of insolvencies fell by 6% year-on-year to 1,727 in July, according to data from the Insolvency Service.
The reprieve was driven by a sharp drop in the number of directors closing their businesses through creditors’ voluntary liquidations, which fell by 17% to 1,336.
But while this is “relatively good news”, there has been “an increase in larger businesses looking for help and guidance”, according to insolvency practitioner Marco Piacquadio, of FTS Recovery.
The number of administrations rose by 53% to 124, while the number of compulsory liquidations jumped by 81% to 248.
