August 2021 saw the number of company insolvencies reach their highest level since the first UK lock

There were 1,348 registered company insolvencies in August 2021, according to figures released by the Insolvency Service – 71% higher than in the same month in the previous year, but 1% lower than the pre-pandemic figure in August 2019.

August 2021 saw 1,256 Creditors’ Voluntary Liquidations (CVLs), the highest level seen since January 2019, more than double the number in August 2020 and 30% higher than in August 2019. Other types of company insolvencies, such as compulsory liquidations, remain comparatively low, driven in part by temporary restrictions on the use of statutory demands and certain winding-up petitions, and enhanced financial support for companies and individuals, the Insolvency Service said.

Restrictions imposed during the pandemic that prevent companies from serving winding-up petitions against debtors will ease after this month, the government stated last week.

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