Statement in response to the publication by The Insolvency Service of the latest insolvency statistics for January to March 2020
Gareth Latimer, Director, Recovery and Reorganisation at Grant Thornton in Belfast commented:
“There were 83 company and 621 individual insolvencies from January to March this year, both figures higher than the same quarter in 2019, rising by 26% and 7.4% respectively.
“However, as the latest data on insolvencies predominately relates to the period before the COVID-19 lockdown, it does not yet present a full picture of the subsequent economic impact.
“As a result, it will be important to review the statistics for 2020 as a whole before making a judgment on the impact of the coronavirus, with economists predicting a sharp recession this year.
“In the medium term, the closure of courts as part of the COVID-19 lockdown will likely mean a significant fall in the number of insolvencies before a spike later in the year when some form of normality returns, possibly following the summer recess.”