LONDON (Reuters – The official data revealed Friday that company insolvencies rose in England and Wales last month, returning to levels just prior to the COVID-19 pandemic.

According to the government’s Insolvency Service, 1,446 companies were insolvent last month. This is 56% more than a year ago and 4% less than September 2019.

Due to large backlogs in the courts, company insolvencies (including voluntary liquidations and administration) fell dramatically last year. Some companies that were about to go out of business received assistance from the government.

Creditor voluntary liquidations accounted for the majority of September’s insolvencies.

Nicky Fisher (Deputy Vice President of Insolvency and Restructuring Trade Organization R3) stated that this suggests directors have decided to shut down their business after considering their financial survival impossible after trading during a pandemic for 18 months.

The pattern of individual insolvencies was similar. However, bankruptcies declined compared to a year earlier. But debt relief orders (a form of bankruptcy for those with less than $30,000) rose to their highest levels since the beginning of lockdown.