Nearly 2,000 companies entered insolvency processes in August, according to official figures, as firms grappled with falling sales and mounting financial pressures.

Nick Cusack, an insolvency practitioner at Azets - a UK top 10 accountancy and advisory firm with six offices across East Anglia - said the challenges contributed to the number of corporate insolvencies reaching 1,946 in August, a four-month high according to Insolvency Service figures.

Monthly company insolvencies by type, England and Wales, August 2021 to August 2026 (Image: Insolvency Service/Companies House)

More than 250 connected companies in the real estate sector entered administration between March and August.

“August also saw an uptick in compulsory liquidations, as creditors continue to chase down debt in an attempt to balance their own books and HMRC continues to pursue tax debts to recover money for the public purse,” Mr Cusack said.

“While the rise in numbers can be........

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