CVLs mean business insolvencies double in a year

Business insolvencies in April 2022 were reported as 1,991, an increase by 115.2% from the 925 insolvencies registered in April 2021.

However, April’s number had decreased by six percent month-on-month, from 2,119 in March 2022.

Pre-pandemic insolvencies for the same month in 2019 were 1,429, making 2022’s figures 39% higher.

Similarly, 1,777 Creditors’ Voluntary Liquidations (CVLs) were reported in April 2022.

This is more than double the number in April 2021, and 74% higher than April 2019.

The increased number of company insolvencies was motored by the increase in CVLs – with 1,777 of the 1,991 being affected by them. The number of compulsory liquidations came to 91.

Christina Fitzgerald, president of enterprise technology firm R3, said: “The monthly fall in corporate insolvencies has mainly been driven by a reduction in CVLs.

“However, the significant year-on-year rise in corporate insolvencies has been driven by the fact that numbers for this process have more than doubled since April 2021.”

“Businesses are trying to trade amidst rising inflation, a contracting economy and consumer confidence at a near historic low – lower than during the peak of the pandemic – due to cost of living concerns.”