Sailing into dangerous waters

The warnings are getting louder. Many experts are predicting a ‘tsunami’ of corporate insolvencies triggered by the ending of the government pandemic support.

Nicola Clark, restructuring and insolvency partner at accountants Azets in the North West, paints a worrying picture as the clock ticks down to the end of schemes such as furlough.

She says: “We expect the number of formal insolvencies in the region to continue to increase as furlough comes to an end and as the moratorium on winding up petitions is lifted at the end of September.”

And she warns: “SMEs may be particularly vulnerable over the next six months.”