May’s 2,552 insolvencies is the highest figure recorded so far in 2023, representing a 40% increase on May 2022, according to the most recent ONS statistics.

Around 99% of liquidations in the first quarter of 2023 related to companies with less than £1m turnover, according to David Kelly, PwC’s head of insolvency.

One reason for this is the high interest rate, now set at 4.5% and due to rise to 4.75% on 22 June.

Kelly said: “For small businesses in particular, these higher rates make it increasingly difficult to take on and finance debt, with many having to use their emergency cash reserves to do so, thus intensifying liquidity issues.

“We’re seeing an uptick in the number of firms needing debt restructuring services and looking at ways to compromise their existing on and off balance sheet liabilities.”

Print was among the worst-hit manufacturing industries in the first quarter of 2023, though the number of insolvencies in the sector has remained steady from late 2022 at an average of 10 insolvencies each month.

The current figure is significantly down on Q2 2022’s peak of 16 insolvencies a month.

Ian Carrotte, CEO of print industry credit check agency ICSM, told Printweek, however, that the firm’s insolvency list had never been longer.

He said: “It comes as no surprise that there has been a big rise in insolvencies due to a perfect storm of factors. High inflation destroys profit margins, and undermines pricing and dries up orders. 

“Energy costs have hit the bottom line over the last few months while the Brexit trade deal continues to do harm to exporters and importers alike.”

Many print firms, he added, had been forced to take on loans during Covid, which have now become overdue for payment.

“We have not seen such a high level of insolvencies,” he said, “since the Credit Crunch of 2007-2008 – with an increase in our debt collecting department as firms fail to pay their invoices on time – or even at all.”

Print was not the hardest-hit sector, however, even in manufacturing, where metal products and food manufacturing made up a significantly larger proportion of insolvencies. 

Elsewhere in the economy, retail and construction jobs made the worst losses, with each suffering hundreds of insolvencies every month.