Based on a latest report published by accountancy firm KPMG, the number of firms across England and Wales, getting into administration rose by 5% to more than 1400 last year.
The report further suggests that Brexit uncertainty and the economic turmoil which followed in particular affected the building and construction industry, in addition to property and real estate sector. In addition, the ongoing restructuring of a large number of high street retailers also had a “profound” impact on commercial property income and values.
Official insolvency notices posted by KPMG’s study in the London Gazette spoke of a total 1,403 companies that went into administration during 2019, a number up from 1,341 the previous year. This however did not include high-profile corporate collapses such as Thomas Cook, which allegedly went into liquidation.
The report also highlighted a surge in insolvencies in the third quarter of the year, during which 420 firms went into administration, this included fashion brands Jack Wills and Karen Millen and the travel firms Late Rooms and York-based Super Break.
According to experts, firms that deemed to be in financial distress will allegedly go into administration in an attempt to salvage themselves as a going concern or to recover more money for creditors.
Insolvencies declined to more typical quarterly levels in the final quarter of last year, with 311 administrations between October and December.
Blair Nimmo, the head of restructuring at KPMG UK, 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 battened down the financial hatches, adopting a prudent and cautious strategy, for some, the challenging trading conditions proved to be a bridge too far.”