Insolvency appointments hit pre pandemic levels - yes really
Insolvency appointments have finally returned to pre pandemic levels peaking with 717 appointments in July 2022, and staying high in August and September. I know I told you not to trust people who say that, but a 32% jump from June to July has made it true.
717 is the highest number of corporate insolvencies since November 2019 (which was 748), and just short of double the COVID period average of 383 insolvencies per month. A large factor in the increase is the continued surge in insolvencies in the Construction sector. In July 2022 28% of the 717 new insolvencies were in the Construction sector. The other big factor is the increase in ATO debt pursuit. Whilst they still aren’t back to winding up companies in the same volume as they were, we are seeing a large increase in calls from directors who have received Director Penalty Notices.
The largest increase was in director initiated Creditors wind-ups with 442 appointments for July, being a 31% increase over June. This is also the largest total for this category since June 2015. Court wind ups remain low at 56 for July, just above the COVID period average of 52. Well short of the 2019 average of 182 wind ups per month.
When looking at the statistics by state, Victoria saw the largest increase with 282 new insolvency appointments in July 2022. This was exactly double June’s number, and Victoria highest number since July 2019’s 284. Even that result was an outlier, you have to go back to 2015 to see Victoria regularly in the high 200’s.