Asset Solutions May 2022 Round-up: The UK’s Latest Bankruptcy and Insolvency News & Statistics
This month we cover a range of stories from the price cuts faced by supermarkets to compensate for the cost of living crisis to the current state of the stock market. We also cover insolvency statistics from April.
You can read last month’s article here: Insolvency News & Statistics April
Asda and Morrisons continue to cut prices
With the cost of living significantly increasing and reaching a crisis. This has caused shoppers to go to competitors such as Aldi and Lidl for their shopping.
Items being discounted include necessities such: as cereal, cooking sauces, chicken and sausages as well as flour, bread and ham.
Asda believes they will be dropping prices by an average of 12%. With shoppers now seeking out food from discounters, other supermarkets will be struggling to keep profits on the same trajectory as in previous years.
To corner this portion of the market Asda has introduced its “Just Essentials” range that should keep shoppers interested in these low-cost products.
Other factors such as price matching should come into play. Currently, UK grocery price inflation has hit 5.2% in the 12 weeks, its highest level since April 2012.
Worried about falling into debt because of the cost of living crisis? Read our article on 3 common debt traps to avoid
China’s COVID restrictions affecting the stock market
It is believed that COVID restrictions in China are causing a significant decline in the European stock market.
With the authorities in Beijing bringing in mass testing, there are growing concerns that the omicron strain could lead to a new lockdown. This comes after Shanghai was put into lockdown in April. The enforced lockdown caused issues with supply chains which caused a decline in the global economy.
The war in Ukraine is another factor that has disrupted supply chains, caused shortages and raised prices.
On April 22nd, it was reported that the Dow Jones Industrial Average, the Nasdaq and the S&P 500 indexes all fell by 2.5% or more. Then across the Atlantic London’s leading FTSE 100 share index declined since it is led by commodities firms such as oil producers and miners.
The FTSE attempted to climb back from morning trade but the index closed at the end of the day down by 1.8%.
Read other global insolvency stories check out our story on: Abramovich sanctioned will Chelsea go bankrupt?
Vaccine factory in Wrexham expecting job losses
Jobs losses are expected at a north Wales factory that manufactures COVID-19 vaccines. These job cuts are sparked by its belief that life is returning to normal and they do not need the same staffing level. At its peak, they employed around 500 members of staff to work at their facility.
The company hopes to return to its regular pre-COVID number of staff as their UK government contract expired at the end of last month. Workers had been made aware of the situation before the termination of the contract in an attempt to minimise the impact it will have on those who will lose their job.
England and Wales: Monthly Insolvency Statistics
Company Insolvencies during April 2022
- There were 1991 registered company insolvencies in April 2022:
- 1777 CVLs
- 91 compulsory liquidations
- 10 CVAs
- 113 administrations
- More than double the amount recorded in April 2021
- 39% more than the amount registered in April 2019
Individual Insolvencies during April 2022
- There were 1708 DROs and 530 bankruptcies in April 2022
- The number of DROs was 20% higher than in April 2021 but 29% lower than in April 2019
If you are worried about debt, bankruptcy or possible insolvency, contact Asset Solutions today at 0800 689 3861. Our experienced team members provide unrivalled assistance to individuals throughout the entire insolvency process and help to stop bankruptcy. We understand that anyone facing problem debt is likely to feel overwhelmed and intimidated. That’s why we’re here to support you throughout the process and help you achieve the best results possible for your situation. Contact us today for more information.
