Latest news with #SimonEdel
Rhyl Journal
a day ago
- Business
- Rhyl Journal
More businesses forced to close in July as cost pressures mount
Official data from the Insolvency Service showed there were 2,081 company insolvencies in July, edging up by 1% compared with June. The number of compulsory liquidations was slightly higher than in June and up 11% compared with the same month in 2024. Compulsory liquidations happen when a company is forced to close when it cannot pay money owed to creditors. July's figure was also a quarter higher than the monthly average across 2024, the data showed. The level of firms facing insolvency has remained elevated since reaching a 30-year annual high in 2023. Construction firms continue to come under the most pressure, with 3,984 insolvencies in the 12 months to July – making up 17% of all cases. This is followed by wholesale and retailers, who made up 16% of all company insolvencies. Experts said firms are being challenged by 'relentless uncertainty' in the global economic environment. Simon Edel, UK turnaround and restructuring strategy partner at EY-Parthenon, said: 'Many businesses are also contending with higher costs including recent increases to employer national insurance contributions and the national living wage. 'With interest rates still relatively high – alongside significant working capital demands and a constrained credit environment – liquidity pressures are intensifying for more UK companies. 'This is causing more businesses and stakeholders to call time.' Freddy Khalaschi, business recovery partner at Menzies, said: 'The summer heat is bearing down on British businesses. 'Thames Water's reserves are drying up, Claire's has fallen into administration, River Island narrowly avoided the same fate after the court agreed a restructuring plan, and more than 1,000 pubs and restaurants have gone under since the last Budget. 'Consumer confidence remains fragile, house prices are falling and falling job vacancies suggest that businesses are cutting back, with hiring costs rising and with AI and automation starting to make their presence felt.'
South Wales Guardian
a day ago
- Business
- South Wales Guardian
More businesses forced to close in July as cost pressures mount
Official data from the Insolvency Service showed there were 2,081 company insolvencies in July, edging up by 1% compared with June. The number of compulsory liquidations was slightly higher than in June and up 11% compared with the same month in 2024. Compulsory liquidations happen when a company is forced to close when it cannot pay money owed to creditors. July's figure was also a quarter higher than the monthly average across 2024, the data showed. The level of firms facing insolvency has remained elevated since reaching a 30-year annual high in 2023. Construction firms continue to come under the most pressure, with 3,984 insolvencies in the 12 months to July – making up 17% of all cases. This is followed by wholesale and retailers, who made up 16% of all company insolvencies. Experts said firms are being challenged by 'relentless uncertainty' in the global economic environment. Simon Edel, UK turnaround and restructuring strategy partner at EY-Parthenon, said: 'Many businesses are also contending with higher costs including recent increases to employer national insurance contributions and the national living wage. 'With interest rates still relatively high – alongside significant working capital demands and a constrained credit environment – liquidity pressures are intensifying for more UK companies. 'This is causing more businesses and stakeholders to call time.' Freddy Khalaschi, business recovery partner at Menzies, said: 'The summer heat is bearing down on British businesses. 'Thames Water's reserves are drying up, Claire's has fallen into administration, River Island narrowly avoided the same fate after the court agreed a restructuring plan, and more than 1,000 pubs and restaurants have gone under since the last Budget. 'Consumer confidence remains fragile, house prices are falling and falling job vacancies suggest that businesses are cutting back, with hiring costs rising and with AI and automation starting to make their presence felt.'
Daily Mail
2 days ago
- Business
- Daily Mail
Companies in crisis as MORE firms go bust: Surge in numbers of businesses closing down in England and Wales - and experts say Rachel Reeves' Budget of blunders is to blame
More companies are going bust across England and Wales, with experts saying Rachel Reeves ' Budget is to blame. Official data from the Insolvency Service showed there were 2,081 company insolvencies in July, edging up by 1% compared with June. The number of compulsory liquidations was slightly higher than in June and up 11% compared with the same month in 2024. Accessories giant Claire's last week became the latest big name retailer to file for administration in another blow to Britain's high streets. Hobbycraft, Quiz Clothing, Select Fashion and WH Smith had also either falling under or closing stores. While more than 1,000 pubs and restaurants have closed down since Ms Reeves' tax raiding Budget last October. Simon Edel, UK turnaround and restructuring strategy partner at EY-Parthenon, warned that 'liquidity pressures are intensifying for more UK companies'. And Dragons' Den icon Theo Pathitis has warned stores may not be able to survive if they are hit with further tax hikes in the autumn. Ms Reeves' Budget last October means employers pay a 15 per cent National Insurance rate on staff salaries exceeding £5,000 from April rather than the current 13.8 per cent levy on wages above £9,100. She also said the National Living Wage would go up by 77p to £12.21 per hour, alongside increases in the capital gains tax rates on selling business assets. July's figure was also a quarter higher than the monthly average across 2024, the data showed. The level of firms facing insolvency has remained elevated since reaching a 30-year annual high in 2023. Construction firms continue to come under the most pressure, with 3,984 insolvencies in the 12 months to July - making up 17% of all cases. This is followed by wholesale and retailers, who made up 16% of all company insolvencies. Experts said firms are being challenged by 'relentless uncertainty' in the global economic environment. Mr Edel said: 'Many businesses are also contending with higher costs including recent increases to employer national insurance contributions and the national living wage. Accessories giant Claire's last week became the latest big name retailer to file for administration in another blow to Britain's high streets Arts and crafts retailer Hobbycraft announced in April that nine more stores will close their doors across both the remainder of August and into September 'With interest rates still relatively high - alongside significant working capital demands and a constrained credit environment - liquidity pressures are intensifying for more UK companies. 'This is causing more businesses and stakeholders to call time.' Freddy Khalaschi, business recovery partner at Menzies, said: 'The summer heat is bearing down on British businesses. 'Thames Water's reserves are drying up, Claire's has fallen into administration, River Island narrowly avoided the same fate after the court agreed a restructuring plan, and more than 1,000 pubs and restaurants have gone under since the last Budget. 'Consumer confidence remains fragile, house prices are falling and falling job vacancies suggest that businesses are cutting back, with hiring costs rising and with AI and automation starting to make their presence felt.' It comes as store closures this year are predicted to top 17,000. It is the highest figure since the Centre for Retail Research (CRR), which compiled the report, began collecting the data in 2015 and follows the closure of 13,479 stores last year. The vast majority of closed shops in 2024 – 11,341 – were independent retailers, a 45.5 per cent jump against the previous year. Business leaders have called for the Chancellor to 'urgently' change course with her tax-raising policies to prevent British high streets from becoming ghost towns. The CRR's forecast of 17,350 store closures would make 2025 worse than 2022, when the withdrawal of government support measures following the pandemic caused 17,151 shops to close. Around 16,145 stores shut their doors at the height of lockdown in 2020.
Glasgow Times
2 days ago
- Business
- Glasgow Times
More businesses forced to close in July as cost pressures mount
Official data from the Insolvency Service showed there were 2,081 company insolvencies in July, edging up by 1% compared with June. The number of compulsory liquidations was slightly higher than in June and up 11% compared with the same month in 2024. Compulsory liquidations happen when a company is forced to close when it cannot pay money owed to creditors. July's figure was also a quarter higher than the monthly average across 2024, the data showed. The level of firms facing insolvency has remained elevated since reaching a 30-year annual high in 2023. Construction firms continue to come under the most pressure, with 3,984 insolvencies in the 12 months to July – making up 17% of all cases. This is followed by wholesale and retailers, who made up 16% of all company insolvencies. Experts said firms are being challenged by 'relentless uncertainty' in the global economic environment. Simon Edel, UK turnaround and restructuring strategy partner at EY-Parthenon, said: 'Many businesses are also contending with higher costs including recent increases to employer national insurance contributions and the national living wage. 'With interest rates still relatively high – alongside significant working capital demands and a constrained credit environment – liquidity pressures are intensifying for more UK companies. 'This is causing more businesses and stakeholders to call time.' Freddy Khalaschi, business recovery partner at Menzies, said: 'The summer heat is bearing down on British businesses. 'Thames Water's reserves are drying up, Claire's has fallen into administration, River Island narrowly avoided the same fate after the court agreed a restructuring plan, and more than 1,000 pubs and restaurants have gone under since the last Budget. 'Consumer confidence remains fragile, house prices are falling and falling job vacancies suggest that businesses are cutting back, with hiring costs rising and with AI and automation starting to make their presence felt.'
Leader Live
2 days ago
- Business
- Leader Live
More businesses forced to close in July as cost pressures mount
Official data from the Insolvency Service showed there were 2,081 company insolvencies in July, edging up by 1% compared with June. The number of compulsory liquidations was slightly higher than in June and up 11% compared with the same month in 2024. Compulsory liquidations happen when a company is forced to close when it cannot pay money owed to creditors. July's figure was also a quarter higher than the monthly average across 2024, the data showed. The level of firms facing insolvency has remained elevated since reaching a 30-year annual high in 2023. Construction firms continue to come under the most pressure, with 3,984 insolvencies in the 12 months to July – making up 17% of all cases. This is followed by wholesale and retailers, who made up 16% of all company insolvencies. Experts said firms are being challenged by 'relentless uncertainty' in the global economic environment. Simon Edel, UK turnaround and restructuring strategy partner at EY-Parthenon, said: 'Many businesses are also contending with higher costs including recent increases to employer national insurance contributions and the national living wage. 'With interest rates still relatively high – alongside significant working capital demands and a constrained credit environment – liquidity pressures are intensifying for more UK companies. 'This is causing more businesses and stakeholders to call time.' Freddy Khalaschi, business recovery partner at Menzies, said: 'The summer heat is bearing down on British businesses. 'Thames Water's reserves are drying up, Claire's has fallen into administration, River Island narrowly avoided the same fate after the court agreed a restructuring plan, and more than 1,000 pubs and restaurants have gone under since the last Budget. 'Consumer confidence remains fragile, house prices are falling and falling job vacancies suggest that businesses are cutting back, with hiring costs rising and with AI and automation starting to make their presence felt.'
