Corporate insolvencies to hit 33,000 in 2024

Overall, the analysts suggest corporate insolvencies could rise to 33,000 – with around 8,000 expected to take place per quarter this year. It also suggests the companies going bust in 2024 and 2025 are largely ones that got into financial trouble in the Covid years.  

Traditionally, those in construction are most at risk of going into liquidation and this has not changed, but both the retail and hospitality sectors nearly caught up with construction in terms of insolvency numbers last year.  

Reflecting on the figures, the Cebr’s deputy chairman Douglas McWilliams said: “Even if Cebr’s forecasts from September 2023 were to be vindicated, UK corporate insolvencies in 2024 would be 28,000 and would be a new record for the post-2013 period for which comparable statistics are available.  

“Our analysis of earlier data suggests that insolvencies during the 1990s crisis will probably have been higher, however. But given the current momentum and some of the leading indicators, such as court activity, it is likely that the uptick in insolvencies this year will be even stronger than we had assumed. 

“Our central forecast for corporate insolvencies for the year has therefore been raised to 33,000. Our model takes account of the outlook for the commercial property sector, which is currently in tougher straits than we thought previously and is likely to push harder for rent recovery. 

“Obviously for those involved each company that fails is an individual tragedy, of hopes dashed and of livelihoods damaged, sometimes irreparably. For the business system as a whole, it is part of the process of life, death and renewal and the reallocation of people and resources to more productive uses.

“It is tragic that life has to be so harsh. But one suspects the alternatives would be even worse.”