Truro Insolvency Expert Warns Cornish Firms: Don’t Wait

Most business owners hope the worst is behind them. The latest figures suggest otherwise.

Corporate insolvencies across England and Wales climbed again in April, and a Truro-based restructuring specialist says Cornish firms are not immune to the pressures driving the rise.

There were 2,085 corporate insolvencies in April 2026 in England and Wales. That is 2.4% more than in March 2026, when the figure stood at 2,037, and 2.8% higher than in April 2025, when 2,028 firms went under.

Andy McGill, a restructuring and insolvency partner at Azets, the UK top 10 accountancy and advisory firm with offices across the South West including Truro, has set out what he believes is behind the latest numbers.

A combination of pressures

Andy points to several overlapping factors. “April’s corporate insolvency numbers have been driven by a combination of geopolitical issues, legislative changes that will increase pressure on margins, ongoing cost challenges and customer caution, and creditors continuing to take an assertive attitude towards chasing down debts as they attempt to keep their own balance sheets in the black,” he said.

He says the wider trend shows compulsory liquidations rising since January 2025, with a sharp jump compared to last month. According to Andy, that is “a sign that creditors are resorting to the courts to recover what they’re owed.”

HMRC is at the front of that queue. “HMRC is leading the way on this in an attempt to recover funds for the public purse, and private sector creditors are following their lead so they can pay their own bills and settle their own debts,” he said.

Creditors’ Voluntary Liquidations also rose month on month, which Andy attributes to directors who have simply run out of road after years of difficult trading. Administrations fell compared with the previous month but remained at their second highest level since August 2023. He reads that as a sign some firms can still be rescued, and that some directors are now seeking advice earlier than they used to.

The war in Iran and the cost of everything

The economic fallout from the war in Iran remains a major worry for many directors, according to Andy.

“Businesses are struggling with the further increase in costs the conflict has caused and are seeking advice about how to manage this in increasing numbers, while the ripple effect of the war has made finance less available and affordable, and restructuring work even more challenging,” he said.

Closer to home, he says new business rates and changes to the minimum wage may prove the final straw for firms that were only just keeping their heads above water. He does not expect those changes to show up in the insolvency figures until the summer, but believes they are already pushing firms to seek advice now.

The Bank of England’s decision to freeze interest rates offers little comfort either. Andy says it means “little relief for businesses when it comes to costs and access to finance,” with the prospect of higher prices still to come as the energy shock from the war filters through.

He also flags political instability. “There seems to be no break for businesses at the moment,” he said, adding that the upheaval at the top of government over the last fortnight will affect clients, suppliers and finance alike, making the climate more turbulent.

Construction, retail and hospitality feeling it most

From a sector view, Andy says construction continues to wrestle with rising costs and wages, payment problems and the knock-on effect of the Iran war on material prices.

“In an industry where tight margins and cashflow challenges are a way of life, this puts a further strain on businesses, many of whom have been battling rising expenses since 2020,” he said.

Retail and hospitality have been hit hard too, squeezed by rising costs and cautious consumers. Andy says households are watching their money closely, and the price increases many hospitality firms have had to bring in are proving too much when customers are spending only on essentials.

He describes a “Golden Quarter” that lost its lustre, with a number of established firms announcing site closures and restructurings as they try to stay solvent.

Advice for worried directors

Andy’s message to anyone concerned about their business is to act early.

“Any directors who are worried about their business or its finances should seek advice as soon as possible. We know how difficult is to talk about your worries about your business, but having that conversation while they’re at an early stage gives you more options, more time and a greater chance of improving your situation compared to if you’d waited until the problem became more serious,” he said.

Azets describes itself as an international business advisory group with 9,000 local experts across 190 locations in eight countries, working with more than 100,000 clients.