Commenting on today’s corporate insolvency figures, Graham Bushby, head of restructuring at RSM said:
‘It’s notable that both corporate and personal insolvencies increased in 2017. In a sense, this is no great surprise – not least because of the uncertainties in the global economy and notably Brexit. As we get closer to the EU exit door, it’s hard to see confidence increasing and distress levels could go up, particularly if we see further rises in interest rates.
‘What’s hidden in the numbers is the impact of one-off events such as the collapse of Monarch or Carillion. These can send shock waves across entire industries and their supply chain, resulting in cashflow emergencies. Such events can ultimately lead to failure if urgent action isn’t taken to stabilise the position.’
‘In 2018, business owners will need to be ever more vigilant and keep a close eye on all vital signs.’