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Insolvencies jump by one-third in Q3

The number of firms entering administration rose by more than one-third during the third quarter of 2019, according to figures collated by accountancy giant KPMG.

The Big 4 firm trawled through the notices published in the London Gazette, finding that 417 firms went onto administration between July and September, up from 310 in the previous quarter and from 322 in the equivalent quarter in 2018.

Despite the failures of a number of household High Street names, the number of retailers going into administration in Q3 fell to 18; the figure was 26 in the second quarter.

The construction sector, in contrast, experienced a jump in administrations, from 49 in Q2 to 76 in Q3. The property sector also saw a hike in insolvencies, with 33 in Q3, up from 18 in Q2.

The pub, restaurant and club sector also fared worse in Q3; insolvencies jumped from 14 in Q2 to 26 in the third quarter.

Head of restructuring for KPMG UK, Blair Nimmo, said: “For some time now, corporate insolvencies have been ticking along at fairly steady levels, so the more marked increase in administrations seen last quarter may herald the start of a new wave of activity.”

Travel company Thomas Cook was not included in the figures as it is compulsory liquidation, not administration.

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