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Azets – UK’s largest Regional Account – comments on recently published Quarterly Company Insolvency Numbers

4th November 2020

Please see below a comment on the Quarterly Company insolvency numbers published today, 30^th October, at 9.30am this morning.

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Commenting, Louise Brittain, Partner, Restructuring & Insolvency, at Azets Group, the UK’s largest Regional Accountant, said:

“The insolvency numbers released today mask the real position facing UK business. They also indicate a marked increase in the number of contentious, or fraudulent, corporate insolvencies taking place. While the headline numbers show a near 75% decrease in forced corporate insolvencies, the reason for this is the winding up courts have been closed since March, so only contentious insolvencies are taking place. Contentious insolvencies relate to a myriad of activities, such as furlough fraud and monies not paid to the HMRC and taken out of the system. This picture is also reflected in the number of contentious projects the insolvency team at Azets have seen in recent months. The reduction, of about a third, in voluntary insolvencies is also potentially due to Company directors sticking their heads in the sand and refusing to face reality. Combined, these factors are just delaying the inevitable increase in corporate insolvencies we are expecting to see. It’s vital that business Directors seek early advice when their company starts too run into trouble and before they risk running out of cash, so they have a full understanding of their options, and therefore avoid the unnecessary pitfalls that otherwise occur”.

Background On Azets

Azets is an international accounting, tax, audit, advisory and business services group, with 160+ offices across the UK and Europe, over 6,500 employees and 600 Partners with a T/O of £500m+. With the largest UK network of local offices, Azets client service is based on delivering a highly personalised experience, serving business and individuals digitally and in person. The Group’s leading proprietary digital workplace technology “CoZone”, is a unique, cloud-based portal, giving clients instant access to information about their business to help them evolve, grow and prosper. It simplifies workflows, increases operational productivity and enables a more productive client relationship. Across its network of offices, Azets supports c.120,000 clients across the UK and Europe. Clients include enterprises, SMEs, large scale business, the public sector and private clients.