Coronavirus crisis brings 50% jump in firms going bust in just a month

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Coronavirus crisis brings 50% jump in firms going bust in just a month

By Ben Harrington For The Mail On Sunday

Published: | Updated:

The number of firms going bust surged 50 per cent in March, official figures reveal.

Data from the London Gazette, the UK’s official public record for insolvencies, shows the appointment of receivers, liquidators or administrators surged to 3,736 between March 10 and April 9.

Last year there were 2,495 insolvency appointments in the same period while the average number over the past year was 1,995.

Gone bust: Companies that have fallen over include Debenhams, upmarket restaurant chain Mark Hix and the publisher of the 179-year-old Jewish Chronicle

James Russell, a partner at City law firm Humphries Kerstetter who compiled the figures, said: ‘We are just three weeks into the Covid-19 shutdown yet we are already seeing the speed and severity of the downturn facing UK companies. We are entering into what could well be a brutal recession.

‘The Government has acted fast to support businesses, in large part through its Business Interruption Loan Scheme. While this is well intentioned, it is misconceived. Banks are not in the business of charity. They write business that is only of benefit to the bank and its shareholders. Businesses should be beware.’

Companies that have fallen over include Debenhams, upmarket restaurant chain Mark Hix and the publisher of the 179-year-old Jewish Chronicle. 

Reports yesterday claimed John Anderson Hire, a portable lavatory operator that was awarded a Royal Warrant in 2018, has lodged a notice of an intention to appoint administrators.

 

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