Number of companies going bust jumped by almost a fifth last month

THE number of companies going bust jumped by almost a fifth in August.

Higher interest rates, which make debts more expensive, has been blamed as a main reason for corporate casualties.

Some firms are struggling to repay loans taken out to keep them afloat during the pandemic.

The Insolvency Service said 2,308 companies went bust in August, up from 1,941 in the same month last year.

Nicky Fisher, president of UK insolvency trade body R3, said: “August’s corporate insolvency figures were the highest for this month in four years as a result of long-term economic issues, director fatigue and creditor pressure.”

Company voluntary liquidations, when bosses decide to shut down struggling firms, accounted for the majority of August’s insolvencies.

There were 1,880 voluntary liquidations, 13 per cent more than in August last year.

The number of firms going into administration also jumped by 68 per cent.

David Fleming, managing director at Kroll, said: “Most businesses fail because they run out of working capital and many emerged from Covid overleveraged.”

This month, Wilko went bust, with 12,500 redundancies.

It has been broken up with 122 stores shared between B&M Bargains and Poundland.

Nat’s rubbish

THE bosses of airlines Ryanair and easyJet have lambasted the UK’s air traffic control provider.

After NATS staffing shortages on Thursday led to more cancellations, Ryanair’s Michael O’Leary called on boss Martin Rolfe to resign.

EasyJet’s Johan Lundgren said NATS have “let customers down all summer”.

Glad of war

GAMES Workshop is now worth £3.8billion after the Warhammer maker toasted bumper trading.

Shares jumped by more than a fifth, as the firm said it expects profits to grow from £39million to £57million this year.

Soaring sales of £121million saw it hand out a dividend of 50p a share.

Good week

Bad week