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Summer sees 50% spike in firms filing for administration

Jonathan Prynn @JonPrynn

THE number of firms filing for administration jumped 50% in the third quarter of the year as businesses were squeezed by rising costs, the crisis in supply chains and falling consumer demand, according to new figures.

In August alone — normally the quietest month for insolvency appointments — there were 105 administration appointments the highest monthly figure since March 2020, with 105 appointments, according to analysis by Interpath Advisory.

A total of 265 companies fell into administration from July to September 2022 — up from 176 during the same period in 2021, and up from 243 in Q3 2020. However, administrations are yet to hit the prepandemic levels of 401 in the third quarter of 2019.

The trend is being seen across a wide range of sectors, with building and construction, industrial manufacturing, leisure and hospitality, retail, and the food and drink industry all witnessing increased administration activity.

Interpath Advisory

CEO Blair Nimmo said: “This is perhaps the first real evidence that a significant shift in activity is now under way.”

Business

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2022-10-06T07:00:00.0000000Z

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