Insolvencies in England and Wales reached more than 2,100 in February as companies continue to struggle against the impacts of higher interest rates, hangovers from the pandemic, weakened spending and supply chain issues.
February's figures from the government's Insolvency Service represent a 17% year-on-year increase and an 18% jump compared to January.
Additionally, more than ten thousand individuals declared bankruptcy last month, representing a 23% hike from the same month in 2023.
David Hudson, a restructuring advisor at professional services group FRP, said: "Rather than fresh starts, the spring brings with it additional challenges for already distressed businesses, particularly those in the strained retail and hospitality sector.
"Many will see large rises in their business rate bills from the start of April as well as having to shoulder increased wage costs."
"While the positive view is that the UK’s recent recession was short-lived, factors like these – combined with increased borrowing costs and consumer confidence remaining weak – will continue to weigh heavily on UK plc."