Company insolvency statistics - Q2 2021

The April to June 2021 (Q2) company insolvency stats for England and Wales have been published by The Insolvency Service, together with related figures for Scotland and Northern Ireland.

Company insolvency statistics for England and Wales – Q2 2021

In England and Wales in Q2 2021, there were a total of 3,116 company insolvencies, including:

2,819 creditors’ voluntary liquidations (CVLs)
102 compulsory liquidations
169 administrations
25 company voluntary arrangements (CVAs)
1 receivership

Total company insolvencies in Q2 2021 increased by 31 per cent from Q1 2021 and by 4 per cent from the same quarter in the previous year.

It should be noted that unlike monthly insolvency statistics, quarterly statistics are seasonally adjusted to account for seasonal variation in insolvencies across the year and allow for comparison to the most recent period within years.

The overall reduction in company insolvencies since the start of lockdown last year is likely to be driven by the range of government measures put in place to financially support companies in response to the coronavirus pandemic, including the Corporate Insolvency and Governance Act.

Liquidation rate statistics for England and Wales – Q2 2021

In the 12 months ending Q2 2021:

1 in 386 companies were liquidated
the company liquidation rate was 25.9 per 10,000 active companies in England and Wales
the company liquidation rate was slightly down in both the 12 months ending Q1 2021 and the same quarter a year ago

Unlike the absolute number of liquidations over a period, the liquidation rate indicates the probability of a company entering liquidation in the previous four quarters. In general, periods of economic growth result in liquidation rates decreasing.

Industry sector insolvency findings for England and Wales – Q2 2021

In the 12 months ending Q2 2021, the construction industry had the highest number of new underlying company insolvencies (1,801), 16 per cent of cases with industry captured.

Elsewhere the accommodation and food services activities (1,474) and wholesale and retail trade; repair of vehicles (1,366) groupings had the second and third highest number of new underlying company insolvencies in the 12 months ending Q2 2021.

Scotland company insolvency statistics – Q2 2021

The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers company insolvency in Scotland. They reported that in Q2 2021, there were 165 company insolvencies, an increase of 32 per cent when compared to Q2 2020. Of the total company insolvencies in Scotland, there were:

31 compulsory liquidations
126 CVLs
7 administrations
1 CVA
0 receiverships

Due to administrative differences, most company liquidations in Scotland are compulsory liquidations. This contrasts with England and Wales where creditors’ voluntary liquidations (CVLs) account for most company liquidations. Figures in Scotland are also not seasonally adjusted.

Northern Ireland company insolvency statistics – Q2 2021

In Northern Ireland in Q2 2021, there were 23 company insolvencies, a increase of 35 per cent when compared with the same quarter of the previous year. Of the total company insolvencies in Northern Ireland, there were: