Restructuring lawyers have pointed to "serious underlying concerns" with the U.K. economy after the latest government data showed the number of corporate liquidations and administrations in the country reached its highest point for six years during 2019.

The data, which was compiled by the Insolvency Service (IS), shows that there were 17,196 corporate insolvencies in 2019 – a 6.8% increase on 2018 and the highest figure since 2013.

The number of administrations also increased by 24% in 2019 compared with 2018 to hit 1,814.

Restructuring lawyers have cited manufacturing, retail, support services and construction as the key sectors to have faced restructuring during 2019.

"This signals a potentially serious underlying concern about the UK economy," said Freshfields Bruckhaus Deringer restructuring and insolvency partner Adam Gallagher in a statement.

"Brexit uncertainty may have played a part, although we could now see a more positive bounce given the more stable political environment."

DLA Piper U.K. restructuring head Robert Russell added: "It's a manifestation of a reality that has existed, and that we who are at the coal face have known about, for a while. There has been a real shift from corporate restructurings happening behind the veil to move into the public sphere.

"I think the new breed of debtholders, including the likes of debt funds and hedge funds, are willing to act as a catalyst for change, they're not hamstrung by political changes that may impact on banks or large institutional lenders. They are able to take advantage of formal insolvency processes, which is a change to the recent dynamic in the UK market."

A number of firms have picked up mandates for administrations and company voluntary arrangements (CVA) in the retail sector in recent months for companies such as Debenhams, Monsoon, and LK Bennett. According to the latest IS statistics, the number of CVAs undertaken in 2019 stayed flat on the 2018 figure.

Travers Smith restructuring partner Edward Smith told Law.com International's U.K. arm Legal Week: "The uptick in administrations may have been a consequence of some of the alternative restructuring arrangements like CVAs becoming more difficult to get approved by stakeholders, creditors and landlords."

With Brexit taking effect, the coming year will be key, according to Duncan Swift, president of insolvency and restructuring trade body R3.

In a statement he said: "A Government with a decisive majority ends some domestic uncertainty, although there are still big question marks around what Brexit will actually look like – and exactly when new rules will kick in.

"Wider economic performance will partly determine whether the recent trend of rising corporate insolvencies continues or not. On the plus side, signs are that businesses are looking to increase investment and recruitment this year, so there is cause for optimism."