Companies forced to close by creditors jumps 63%

The number of companies forced to close following petitions presented by creditors jumped 63% to 2 067 in 2023 up from 1 265 in 2022 according to statistics from the Royal Courts of Justice.

The number of winding-up petitions rose to 70% to 4 917 in 2023 up from 2 885 the year before.

Many businesses are struggling to service their debts due to a sharp rise in interest rates over the last two years says UHY Hacker Young. Much of this debt was taken on during Covid. This has caused many businesses to delay paying their bills – or stop paying altogether.

The recent increase in winding-up petitions is also being driven by HMRC working through the backlog of ‘zombie companies’. These businesses are only able to survive by failing to repay all of their debts particularly tax debts.

Brian Johnson a partner...