The number of insolvency-related activities in Wales has reached its highest level this year, according to new research from R3, the insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe shows there were 76 cases of insolvency-related activity, which includes liquidator appointments, administrator appointments and creditors’ meetings, in Wales in April – the highest number this year, and since November 2022’s total of 84.
Insolvency-related activity numbers also rose month-on-month, with April’s figures 10.1% higher than March’s, and year-on-year, with April 2023’s figures 33.3% higher than April 2022’s.
Wales saw the fourth highest yearly rise of all the regions and nations in the UK in April, falling only behind the North East (109.1% rise), the West Midlands (64.3%) and the South East (59.3%).
Charlotte May, Chair of R3 in Wales, says:
“The monthly and yearly rises in insolvency-related activity in Wales reflect the challenging trading climate that many businesses are still experiencing post-pandemic.
“The high cost of living is affecting consumer spend, while at the same time the costs of rent, utilities, raw materials and transportation for Welsh businesses have all increased.
“These factors, coupled with pressure to increase staff wages have left many businesses struggling to grow, to pay their bills, or to pay off existing debt.”
Charlotte, who is Associate Director for South West and Wales at Manolete in Bristol, continues:
“It’s a really difficult time for businesses, but it’s crucial you seek professional advice as early as possible if you’re struggling financially.
“Seeking help is not a sign of failure – it’s a step towards a solution, and directors who seek advice while their issues are at an early stage typically have a greater range of options than those who wait till the situation has become more severe.
“Most R3 in Wales members will be happy to provide a free initial consultation so you can explain the challenges you’re facing, and help you understand the best course of action for you and your business.”