Concern has been raised that a wave of insolvencies could be on the horizon, with the Institute of Directors warning that companies face collapse because a temporary relaxation of rules regarding directors' personal responsibility for "wrongful trading" has now ended. Michelle Thorp, chief executive of the Insolvency Practitioners Association, says she is braced for a "bow curve" of insolvencies, saying that Government support means 2,500 have probably been prevented so far. Julie Palmer, regional managing partner at Begbies Traynor, says data shows a "wall of distress", with 527,000 businesses showing signs of strain by the end of June. Begbies Traynor analysis shows there were just 778 company insolvencies in England and Wales in August, a 43% decline on August 2019.
Read more: The Sunday Times
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