Manchester-headquartered property specialist, Landwood Group, are calling for businesses to “be prepared” for the end of government support schemes – as the firm predicts a surge in firms going into liquidation.
According to the governments latest Monthly Insolvency Statistics for April 2021, compulsory liquidations were 74% lower than April 2020 and 89% lower than April 2019. Meanwhile, administrations were 48% lower than both April 2020 and April 2019.
However, despite the above statistics making for positive reading, Landwood is keen to stress that government initiatives such as furlough have “propped-up businesses that otherwise might have failed”.
Landwood states that over the past year, much of their recovery work has been for businesses – SMEs and large firms – which have collapsed under financial pressures, many of which were related to the pandemic.
As business support schemes come to a close, Landwood expects an influx of casualties similar to Merseyside-based Total Glass Ltd, which fell into administration last October and saw 167 employees made redundant.
Mark Bailey, Landwood Group’s Managing Director, said: “We are currently in a period of calm before an inevitable storm, and we expect the coming months will see many more business failures like Total Glass.
“While we are currently experiencing one of the lowest numbers of liquidations and administrations in recent history, this will not last.
“When business support schemes, such as furlough come to an end, we expect an influx of liquidations and administrations, as a number of businesses will have become unviable or failed to adapt to changes brought about by the pandemic.
“It is paramount that businesses get their house in order at this time and recoup some of their losses through disposing of assets or property effectively.”