MORE than 25,000 UK companies went bust last year — the highest figure in three decades.
Bankruptcies were up 14 per cent on 2022, as businesses struggled with costs and interest rates, according to the Insolvency Service.
2
Meanwhile creditors’ voluntary liquidations surged 9 per cent to 20,577, the highest since records began in 1960.
And there were 2,827 compulsory liquidations — almost twice as many as in 2022.
Companies were hit by higher energy and wage bills, as well as falling consumer confidence as hard-pressed families cut back on spending.
Budget homeware chain Wilko was the most high-profile casualty.
READ MORE ON BUSINESS
Its closure in the autumn led to the loss of more than 12,000 jobs.
The number of companies going bust has been rocketing since 2019, apart from during the pandemic when government support saved many businesses.
The figures have climbed from 17,000 five years ago to 22,000 in 2022. Last year they reached 25,158.
During the pandemic the number of bankruptcies fell to 12,631 in 2020, and 14,059 in 2021.
Most read in Business
But businesses that have hung on since the end of lockdown for a rise in consumer spending have simply run out of time and money, said Nicky Fisher, president of insolvency trade body R3.
He warned: “Unless the economic picture improves, costs come down and people start spending, it seems likely that insolvency numbers will remain high.”
But Julie Palmer, a partner at business rescue firm Begbies Traynor, believes there are brighter days ahead, saying: “The better-than-expected Christmas may delay concerns for some companies.
“And the fall in shop price inflation, together with signals from the Bank of England that it may cut interest rates, also provide some comfort for business leaders.”
£57M HSBC FINE
HSBC has been fined a whopping £57.4million by the Prudential Regulation Authority for “serious failings” over customer deposit protection.
The bank marked 99 per cent of eligible saver deposits as being “ineligible” for protection under the Financial Services Compensation Scheme from 2015 to 2022.
That left customers at serious risk of losing all their savings if the bank went bust.
Imposing its second highest ever fine, the watchdog said HSBC “fell far short of its obligations”.
LESS IN THE KITTY
2
THINGS are less than purr-fect for vet and pet store chain Pets At Home.
They issued a profit warning yesterday, blaming its woes on slowing retail demand.
Shares in the company, which runs about 450 stores and 440 vets’ practices, dropped 3 per cent.
Revenue growth slowed from 6.5 per cent in the first half of the year to 4.3 per cent in the third quarter.
“Our sales growth didn’t quite hit the levels we expected,” said boss Lyssa McGowan.
MORR PUMP SALE
MORRISONS has flogged its 337 petrol forecourts to Motor Fuel Group for £2.5billion to help to reduce its £5.7billion debt.
The supermarket chain will take a 20 per cent stake in MFG as part of the deal.
Staff affected will be offered jobs in stores.
It will also continue supplying food and groceries at the forecourts handed over in the deal.
MFG, which already runs 900 UK forecourts, is owned by the same US private equity firm, Clayton Dubilier & Rice, as Morrisons.
LATIN DIP PAIN FOR DIAGEO
DRINKS giant Diageo blamed a plunge in demand in Latin America and the Caribbean for a slump in its profits over the last six months.
The Gordon’s gin and Johnnie Walker whisky-maker said it was suffering as some shoppers are choosing cheaper drinks.
Global net sales slipped by 1.4 per cent to £8.7billion in the half-year.
But its British business is still booming, with sales boosted 9 per cent by soaring demand for Guinness.
The stout is the UK’s most popular pint after knocking CARLING off the top in 2022.
Diageo also trumpeted a 17 per cent sales jump for Johnnie Walker across Europe.
READ MORE SUN STORIES
“We remain well-positioned and resilient for the long term,” said boss Debra Crew.
But Richard Hunter of Interactive Investor warned the struggle in other markets “has left a bitter taste in the mouth” for the firm.
IT’S CRUST BAD LUCK
TRANSPORT food firm SSP, owner of Upper Crust, said it has been hit by train strikes.
The group said the impact will continue throughout the first three months of 2024 across the UK, as well as in continental Europe.
But the business, which runs outlets at airports and railway stations, said sales climbed 17.1 per cent in the final three months of last year thanks to buoyant air travel and commuters returning to offices.
