Last year, more than 25,000 British companies went bankrupt – the highest figure in thirty years

Last year, more than 25,000 British companies went bankrupt – the highest figure in thirty years.

Bankruptcies were up 14 percent from 2022 as companies struggled with costs and interest rates, according to the Insolvency Service.

Meanwhile, the number of creditors' voluntary liquidations rose 9 percent to 20,577, the highest since records began in 1960.

And there were 2,827 mandatory liquidations – almost twice as many as in 2022.

Companies were hit by higher energy and labor costs accountsas well as declining consumer confidence as struggling families cut back on spending.

Budget home goods chain Wilko was the most talked about victim.

Its closure in the autumn led to the loss of more than 12,000 jobs.

The number of companies go bankrupt has skyrocketed since 2019, except during the pandemic, when government aid saved many businesses.

The numbers have risen from 17,000 five years ago to 22,000 in 2022. Last year they reached 25,158.

During the pandemic, the number of bankruptcies fell to 12,631 in 2020 and 14,059 in 2021.

But businesses that have clung to a surge in consumer spending since the end of lockdown are simply running out of time and money, says Nicky Fisher, chairman of insolvency trade body R3.

He warned: “Unless the economic picture improves, costs fall and people start spending, it seems likely that bankruptcies will remain high.”

But Julie Palmer, partner at business rescue firm Begbies Traynor, believes better days lie ahead, saying: “The better than expected Christmas can postpone worries for some companies.

“And the fall in retail price inflation, together with signals from the Bank of England that it could cut interest rates, also provides some comfort for business leaders.”

LESS IN THE CAT

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THINGS are less than spinning for the vet and pet store chain Pets At home.

They issued a profit warning yesterday, blaming slowing retail demand.

Shares of the company, which operates about 450 stores and 440 veterinary practices, fell 3 percent.

Sales growth slowed from 6.5 percent in the first half of the year to 4.3 percent in the third quarter.

“Our sales growth did not quite reach the levels we expected,” said boss Lyssa McGowan.

LATIN DIP PAIN FOR DIAGEO

DRINKS giant Diageo has blamed a drop in demand in Latin America and the Caribbean for a decline in profits over the past six months.

Whiskey maker Gordon's gin and Johnnie Walker said it was suffering because some customers are choosing cheaper drinks.

Global net sales fell 1.4 percent to £8.7 billion in the half year.

But the British activities are still flourishing: turnover increased by 9 percent due to the sharp increase in demand for Guinness.

The stout is Britain's most popular pint after knocking CARLING off the top in 2022.

Diageo also announced a 17 percent sales increase for Johnnie Walker across Europe.

“We remain well positioned and resilient for the long term,” said boss Debra Crew.

But Interactive Investor's Richard Hunter warned that the struggles in other markets have “left a bitter taste in the mouth” for the company.