David Kelly, Head of Insolvency at PwC UK, said:
“Encouragingly, total insolvency figures didn’t hit the same peak levels as 2023, and December 2024 also saw some respite compared to the previous month. PwC analysis shows that some sectors are more disproportionately affected than others, with retail related insolvencies increasing by over 30% in December compared to November - with the equivalent of six retailers going out of business every day. Restaurants, however, saw a 50% reduction in insolvencies month-on-month. Manufacturing failures were up by over 25% month-on-month, and construction continues to account for a considerable number of corporate bankruptcies, with over 220 in December alone.
“The outlook for 2025 will be challenging for many small to medium sized businesses who rely on shareholder and lender support to continue as a going concern. Christmas trading was subdued for many businesses, and we would expect to see an increase in insolvency filings in January and February as companies take stock of their results and look toward impending tax changes in April. We will need to see an uptick in market sentiment and consumer appetite, to avoid the risk of corporate insolvency levels in 2025 remaining at some of the highest levels seen in decades.”
ENDS
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