UK, Europe Hit By Unexpected Bankruptcies

The year has seen unexpected bankruptcies, with the number at its highest level in the second quarter (Q2) of 2023.

Stationery chain Paperchase keeled over back in February but was taken over by Tesco. I Photo: Kake Flickr

The bankruptcies ranged from companies in retail, jewelry, bakeries, books, pharmaceuticals, cryptocurrency, and banks, among others. Indrabati Lahiri reported for Euronews Business.

Although some of the largest busts took place across the pond in the US, such as the Silicon Valley Bank and FTX, Europe also witnessed its fair share of companies closing their doors.

Among them, the hardware retail chain Wilko was best known. In January, the company borrowed £40 million from Hilco Capital, announcing the slashing of 400 jobs the following month and revealing administration in August.

The bankruptcy took 12,000 jobs and 400 stores down with it.

Wilko ended up in about £625 million of debt, and not even the founding Wilkinson family’s multi-million-pound fortune could act as a safety net.

The Belgium bakery-restaurant chain, Le Pain Quotidien, also announced the insolvency of its UK division in July 2023. Stationery chain Paperchase keeled over back in February but was taken over by Tesco.

Online bookseller Book Depository also shut its doors in April 2023, following major changes by Amazon, its parent company, which announced a total of about 27,000 job cuts in January and March 2023.

Frozen foods supermarket chain Iceland also announced the closing of its Ireland branch in June.

UK tile company Tile Giant opted for a pre-pack administration deal in February. Upmarket jewelry retailer Vashi announced insolvency in April, following a winding-up notice by Canary Wharf, where it was based, which also affected several other City giants such as Allen and Overy.

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