Administration List has revealed that there was a drop of nearly 20 per cent (19.29 per cent) in the number of insolvent businesses listed on the site between March and April 2020.

In a surprise decline during the COVID-19 pandemic, only 251 businesses were listed as insolvent in April, compared to 311 in March.

Retail and construction continued to be hardest hit, recording 81 and 73 insolvencies respectively.

The financial sector has seen insolvencies rise since Administration List began recording monthly sector-based reports in February. February saw 15 financial companies listed as insolvent, followed by 21 in March and now 24 in April.

Report of companies listed with Administration List as having appointed administrators or liquidators during April 2020. Data from www.administrationlist.co.uk

April was the first full month that the UK spent under an official lockdown following the government’s decision to dramatically restrict movement from 23rd March.

However, it was also the month that financial aid made its way to businesses on the front line, which could account for the surprisingly low level of insolvencies in clearly distressed sectors such as hospitality.

It was, however, a month of big-name headlines with everyone from Debenhams to Carluccio’s forced to appoint administrations.

This data comes as part of Administration List’s ongoing efforts to monitor insolvencies across the country to track the impact of the pandemic on our economy.

The gap between administrations and liquidations remained in April, with 32 administrations to 214 liquidations.

Report of companies listed with Administration List as having appointed administrators or liquidators during April 2020. Data from www.administrationlist.co.uk

Comment:

Stephen Ideh, Director of Administration List, commented:

“The continued presence of retail as an unfortunate leader in the number of distressed businesses listed with us is to be expected. What’s interesting to see in April is the slow, but steady increase in the number of financial businesses that have hit the wall.

“With the government’s financial aid now starting to reach businesses in the UK, we may see a change in direction. Sadly, this is far from certain. As the lockdown continues, it could just be that support has come too late for some.

“Of course, with change comes opportunity and I have no doubt that as distress creeps up and down our supply chains there are many investors who will step up to buy the distressed assets from other less successful businesses.”

Note to editors:

The full data can be found here. Contact and names are visible only for subscribers.
If you use the data as part of your news or content or share the information, please credit Administration List and include a link to www.administrationlist.co.uk

If you’d like any additional information, please contact:
support@administrationlist.co.uk

About Administration List

Founded in 2017, Administration List provides information to its subscribers on distressed businesses in the UK.

Subscribers have access to data including details of administrations and liquidations, administrator contact details and the company’s financial records all in one place.