Top Service News
Top Service Ltd: Response to Monthly Insolvency Statistics
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New statistics on company and individual insolvencies in England and Wales for February 2021 have been released by the Government Insolvency Service and reports that since the start of the first UK lockdown the overall numbers of company insolvencies have remained low compared to pre-pandemic levels.
The overall reduction in company insolvencies is in part driven by the range of government support put in place to financially support companies in response to the coronavirus (COVID 19) pandemic[1] although the true picture of the impact of company and individual insolvencies to the construction industry is likely not to be fully understood until the 12 months ending 2021 as the nation fluctuates between local and national lock down measures.
To help protect businesses from insolvency a number of changes were introduced under the Corporate Insolvency and Governance Act (2020). The Government announced (Dec 2020) that the temporary restrictions placed on issuing statutory demands and winding up petitions has been extended to 31st March 2021 in order to relieve pressure being placed on businesses dealing with coronavirus (read full article). The extension until the end of March 2021, means winding up petitions are prohibited if the statutory demand served was between March 2020 and September 2020.
Reported in the Government’s Monthly Insolvency Statistics (February 2021) ‘between 26 June 2020 and 28 February 2021, four companies obtained a moratorium and five companies had a restructuring plan sanctioned by the court. The low number of cases of since the Act came into force is likely to be as a result of the range of Government support provided to companies as mentioned above, including the range of temporary measures that apply until 30 June 2021.’[2]
Emma Miller, Top Service Company Director says;
“Whilst the support offered by the Government is welcome, I know some of our customers have felt frustrated, in particular with the insolvency restrictions, specifically where the debtor company has a history of non-payment and where overdue invoices date back to pre-pandemic times. At Top Service we advise our members to discuss with us alternative collection options and our customers have seen good collection results from our bespoke collection strategies, whilst maintaining their business relationships.”
Top Service Ltd debt recovery service is operating normally. Our team are proving that their skills are second to none with the results we are achieving during this challenging time. Top Service members have access to an exclusive combination of no collection, no fee recovery services.
Contact our helpdesk team today on 01527 518800 to discuss how Top Service Ltd can support and help you protect your business.
[1] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/969214/Commentary_-_Monthly_Insolvency_Statistics_February_2021.pdf
[2] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/969214/Commentary_-_Monthly_Insolvency_Statistics_February_2021.pdf