More companies went bust in the past year than did during the Global Financial Crisis, according to figures from Forvis Mazars.

Company insolvencies hit 25,551 in the year to July 2024, according to the audit firm – 1.4% higher than the total number of companies that went insolvent in the same period during the GFC (25,186 in 2008/09).

Rebecca Dacre, partner at Forvis Mazars, said the figures are a strong reminder that many businesses are still a long way off from recovery.

“Despite initial signs of improvement in the economy, some sectors are still experiencing severe difficulty as interest rates remain high. Falling consumer spending during the cost of living crisis has also made it incredibly difficult for some businesses to survive. The retail and hospitality sectors have borne much of the brunt,” she said.

“The slight drop in interest rates will be welcome news for many businesses during the busy summer months. However, unless we see a stronger economic recovery, it is likely we will see more companies pushed towards insolvency.”

---