Businesses across the UK continue to struggle under the current economic climate, with company insolvencies jumping by 27% in June, compared to the same month last year.
Monthly insolvency figures remain high, with 2,163 companies closing their doors in June, compared to 2,552 in May, 1,685 in April, and 2,457 in March 2023.
Creditors' voluntary liquidations accounted for 81% of insolvencies, while compulsory liquidations made up 12% of company closures.
June's figures highlight an increasingly hostile environment for businesses, with industry figures painting a bleak picture for the UK.
Nicky Fisher, president of insolvency trade body R3, said: "Firms are trading in a time of cautious consumer spending and rising costs, which are hitting margins and profits hard.
"Directors expect costs and wages to rise further as the year goes on, and if these don't translate into more demands for goods and services, it could be the final blow for those businesses that are just managing to survive."
As interest rates continue to rise, Fisher advised directors to "be alert to the signs of financial distress" their companies may be facing and to make contingency plans.
"Seek advice if [you] find yourself facing issues like rising stock levels, problems with cashflow or difficulties paying staff, taxes or suppliers," concluded Fisher.
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