Why Did England and Wales Experience a Record Number of Voluntary Liquidations in 2022?

Navigating the economy as a business has always been challenging. This is because there are always issues beyond an organisation’s control that can affect how consumers engage with them and the value of the products and services they sell. This has always been the case, but it hit unprecedented heights in 2020 as the coronavirus took hold and completely shook up the entire world, subsequently shaking up its economy in the process.

When the pandemic started, businesses were forced to close their doors and, where possible, adapt to working from home. It meant fewer people were going out and were more hesitant to spend money, meaning a large number of organisations across the country took in a lot less income than they managed in previous years.

As such, the government was not simply willing to stand by and let these businesses shut down. Instead, action was taken, and different measures were put in place that meant businesses were given a bit of breathing room and had the opportunity to navigate through the unprecedented circumstances they found themselves in. Whilst this worked well at the time, in 2022, as restrictions and measures came to an end, there have been a record number of voluntary liquidations as a result. The reasons for this will all be explained in more detail below.

Real Reason Behind England and Wales Experience a Record Number of Voluntary Liquidations in 2022? -