According to data from the Insolvency Service, during 2019 the total number of company insolvencies in England and Wales rose to its highest level since 2013.
The figures revealed that the increase was largely driven by a rise in creditors' voluntary liquidations. Creditors' voluntary liquidations reached their highest annual level since 2009.
Meanwhile, the number of administrations increased in 2019 when compared to 2018. Compulsory liquidations, on the other hand, decreased in 2019.
The number of individual insolvencies in England and Wales increased to its highest level since 2010, the data revealed. It found that the rise was mainly driven by an increase in individual voluntary arrangements, which reached their highest year on record.
'These latest figures paint a bleak picture for the macro economy overall and temper the pre-Christmas optimism caused by the 'Boris bounce',' said Michael Mulligan, Insolvency and Restructuring Partner at law firm Shakespeare Martineau.
'In reality, growth continues to stagnate, and business and individuals are feeling the effects. There are thousands of zombie companies hanging on across a number of vulnerable sectors.'