Number of insolvencies fall over second quarter

The number of insolvencies in the UK has fallen by 14% for the second quarter of this year.

The study compiled by ‘Big Four’ firm KPMG found that 310 companies filed for administration between April and June, a fall of 14% compared with the first quarter. The results are on par with the same period last year, with 303 companies filing for administration.

There was a small increase on the food and drink sector entering into administration over the quarter – up from 13 in Q1 to 18 in Q2.

It was a similar situation for restaurants, pubs and clubs, which collectively saw 14 administrations over the quarter, Jamie Oliver’s Restaurant Group and the Red’s True Barbecue chain.

Although Bathstore and Select entered into insolvency, the number of retailers going into administration falling slightly from 28 in Q1 to 26.

Blair Nimmo, head of restructuring for KPMG UK, said: “You could be forgiven for thinking there had been a dramatic increase in corporate insolvencies since the turn of the year, but the truth is that numbers have tracked downwards over the last three months.

“Prolonged uncertainty around Brexit has perhaps further delayed a ‘moment of truth’ for companies in those sectors which are more vulnerable to economic volatility, while a number of companies in the retail and casual dining sectors have put forward CVA proposals as part of wider restructuring programmes which aim to put them on a more stable financial footing and head off the prospect of an administration.”