{"id":64952,"date":"2023-02-04T09:51:50","date_gmt":"2023-02-04T14:51:50","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64952"},"modified":"2023-02-04T09:51:50","modified_gmt":"2023-02-04T14:51:50","slug":"companies-in-uk-are-hitting-the-wall-at-fastest-rate-since-global-financial-crisis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64952","title":{"rendered":"Companies in UK Are Hitting the Wall at Fastest Rate Since Global Financial Crisis"},"content":{"rendered":"
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Companies in UK Are Hitting the Wall at Fastest Rate Since Global Financial Crisis<\/a><\/h3>\n<\/header>\n
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As the price of everything, including debt, continues to soar, life is getting harder and harder for the UK\u2019s heavily indebted businesses.\u00a0<\/strong><\/p>\n

Business insolvencies in the UK surged by 57% in 2022, to 22,109,\u00a0according to<\/a>\u00a0the latest data from the Insolvency Service, a UK government agency that deals with bankruptcies and companies in liquidation. It is the highest number of insolvencies registered annually since 2009, at the height of the Global Financial Crisis.<\/p>\n

Last year \u201cwas the year the insolvency dam burst,\u201d\u00a0said<\/a>\u00a0Christina Fitzgerald, the president of R3, the insolvency and restructuring trade body. Insolvencies peaked in the fourth quarter, underscoring the compounding pressures on companies grappling with surging costs and rapidly slowing economic activity.<\/p>\n

\u201cSupply-chain pressures, rising inflation and high energy prices have created a \u2018trilemma\u2019 of headwinds which many management teams will be experiencing simultaneously for the first time,\u201d Samantha Keen, UK turnround and restructuring strategy partner at EY-Parthenon and president of the Insolvency Practitioners Association (IPA),\u00a0told<\/a>\u00a0the Financial Times. \u201cThis stress is now deepening and spreading to all sectors of the economy as falling confidence affects investment decisions, contract renewals and access to credit.\u201d<\/p>\n

Other headwinds include soaring interest rates, falling consumer demand, nationwide strikes, lingering Brexit-induced supply chain issues, an\u00a0epidemic of quiet quitting<\/a>\u00a0and both chronic and acutely bad government.<\/p>\n

Closest to the Edge<\/strong><\/p>\n

None of this, of course, should come as a surprise. Of all the large economies in Europe, the UK\u2019s is arguably closest to the cliff edge. As newspaper headlines trumpeted this week, the UK economy this year will probably fare worse than Russia\u2019s sanction-hit economy, according to the IMF\u2019s latest forecasts. But then the same\u00a0could be said<\/a>\u00a0of many other European economies, including Germany and Italy.<\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Companies in UK Are Hitting the Wall at Fastest Rate Since Global Financial Crisis As the price of everything, including debt, continues to soar, life is getting harder and harder for the UK\u2019s heavily indebted businesses.\u00a0 Business insolvencies in the UK surged by 57% in 2022, to 22,109,\u00a0according to\u00a0the latest data from the Insolvency Service, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[2,3],"tags":[3903,195,265,431,534,12913,27230,13351,3237,820,2080],"class_list":["post-64952","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-bankruptcies","tag-debt","tag-energy-crisis","tag-interest-rates","tag-monetary-policy","tag-naked-capitalism","tag-nick-corbishley","tag-price-inflation","tag-supply-chains","tag-uk","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64952"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64952\/revisions"}],"predecessor-version":[{"id":64953,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64952\/revisions\/64953"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}