Administration List’s monthly analysis of UK insolvency data has revealed a 7.9 per cent decrease in the number of insolvent businesses listed on the site between May and June 2020.

In what is proving an increasingly challenging period in the wake of the global COVID-19 pandemic, Chancellor Rishi Sunak’s emergency measures appear to be helping. During the early onset of the pandemic in March, 311 businesses were recorded as insolvent. In April it was slightly less at 251.

Now the tide has turned.

In May 167 businesses were listed as insolvent. In June that figure has decreased again to 154.

Retail, real estate, and construction remain the pandemic’s primary victims, though the insolvencies in construction and transport prove these industries are far from recession-proof either.

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

June welcomed in the second month of the governments’ wide-ranging financial aid for distressed businesses with our figures perhaps showing that a short-term solution to a long-term problem is at least bringing immediate results to a struggling economy

But even the big hitters are not immune to going under. The government’s decision to dramatically restrict movement nearly three months prior appears to have caused many companies irreversible damage. Bigger names – particularly in retail – such as Harveys TM Lewin were among those to go under in June.

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 in June now stands at 32

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

Comment:

Stephen Ideh, Director of Administration List, commented:

“Retail remains the number one victim in the number of distressed businesses listed with us. The high street was already competing with online-focused retailers like Asos and Boohoo. For less tech-savvy retailers like Oasis, the pandemic clearly proved a bridge too far.

“On a more positive note, the number of financial businesses going under remains relatively low. From the outside looking in, that might be surprising.

After all, the financial services sector is facing multiple challenges with social distancing in offices and a lack of support staff on the IT side of things a clear problem. That being said, these are relatively minor inconveniences in a tech-reliant industry where the digital infrastructure to work remotely is already in place.”

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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.