The number of companies entering administration in England and Wales rose by nearly 5% to more than 1,400 last year, according to accountancy firm KPMG. The study of official insolvency notices in the London Gazette found that 1,403 firms went into administration in 2019, up from 1,341 in 2018, marking a 41% increase over the two-year period.
The construction and retail sectors were particularly hard hit, with 254 administrations in building and construction, up from 216 in 2018. The real estate sector also suffered, with 69 administrations compared to 53 the previous year. High-profile collapses included fashion brands Jack Wills and Karen Millen, travel firms Late Rooms and Super Break, and greetings card retailer Clintons.
Blair Nimmo, head of restructuring at KPMG UK, attributed the rise to profound political and economic uncertainty, fragile consumer confidence, and rising overheads. He noted that while many companies adopted a cautious strategy, some found the challenging conditions too much to bear. However, he suggested that December's general election result had brought a degree of certainty, with business confidence responding positively.
Despite this, KPMG was appointed administrator to department store chain Beales just last week, threatening 1,300 jobs in the latest blow to the UK high street. The official annual total from the Insolvency Service is due to be published shortly, with 2018 data showing the highest level of administrations in five years.
