THE insolvency and restructuring profession rescued 297,000 jobs and returned £1.82bn to creditors in insolvency cases in 2019.
That is the equivalent of around 800 jobs and £5m a day, according to a new report from R3, the insolvency and restructuring trade body.
The report, “The value of the profession: how insolvency and restructuring supports the UK economy”, is based on responses to a survey of representatives of 71 companies from the insolvency and restructuring profession in the UK carried out by Savanta ComRes.
Of the £1.82bn members of the insolvency and restructuring profession returned to creditors in 2019, £353m was from corporate insolvency and restructuring cases, and £1.47bn from personal insolvency cases.
Further findings include the discovery that the insolvency and restructuring profession advised 60,000 businesses and 144,000 individuals in 2019, with an average of £13,300 returned to creditors upon completion of each personal insolvency procedure.
Tim Cooper, Chair of R3 in Scotland and a Partner at Addleshaw Goddard, says: “This research shows the scale of the economic contribution made by the profession – the businesses and individuals it helps, the jobs it saves, and the money it returns to creditors – which can be hard to quantify because of the nature of insolvency and restructuring cases.
“This report shows what a contribution the profession made in a relatively calm period for the economy, but it also underlines the important role we can play in supporting businesses, individuals and the wider economy to resolve financial distress in a post-pandemic environment, and why our members are at the forefront of getting the UK back to work – which is exactly what R3 in Scotland will be debating at its Forum on 9th and 10th June.”