Overview
Welcome to our Insolvency statistics hub.
Where our Menzies’ Restructuring and Insolvency team share their latest comments on the official Insolvency statistics released by The Insolvency Service.
Look forward to monthly commentary, with access to all of our past updates below.
The next round of insolvency statistics are to be released on 17/3/26.
January 2026 commentary:
January Insolvencies Increase Month-on-Month Amid Ongoing Sector Pressures
Note to say that insolvencies rose this month, sitting 4% higher in January than in December 2025, yet 14% lower than January 2025.
CVLs topped the list of all insolvencies, a 1% increase from a month prior, yet 17% lower than January 2025. Put together, this accounts for 76% of all company insolvencies.
Top sectors include:
- Construction (3,931, 17% of cases with industry captured),
- Wholesale and retail trade; repair of motor vehicles and motorcycles (3,728, 16% of cases with industry captured),
- Accommodation and food service activities (3,353, 14% of cases with industry captured),
- Administrative and support service activities (2,446, 10% of cases with industry captured),
- Professional, scientific and technical activities (1,991, 8% of cases with industry captured).
- Manufacturing (1,943, 8% of cases with industry captured).
Freddy Khalastchi, Restructuring & Insolvency Partner at Menzies LLP, warns that the pressures facing high street and leisure operators are now increasingly structural, rather than simply seasonal:
“Hospitality, retail and leisure businesses had hoped for a stronger start to the year, yet many continue to grapple with rising costs, subdued consumer spending and increasingly limited headroom within already thin operating margins.
Hospitality, leisure, property and construction businesses tend to feel the strain most acutely at this time of year, as winter weather and shorter daylight hours dampen activity and delay projects. Retailers, meanwhile, are often forced into heavy discounting to clear unsold Christmas stock, as fragile demand and persistent cost inflation further erode profitability.
The latest insolvency figures underline that these challenges extend well beyond a typical post-Christmas slowdown. Instead, they point to deeper pressures that continue to test the resilience of the UK’s consumer-facing sectors and may require urgent policy attention.”
Khalastchi adds that while the recently announced pub rescue package offers some targeted relief, broader support remains limited:
“Aside from limited relief for pubs – many of which have already closed their doors in recent years – there has been little meaningful government support for other struggling sectors. With food, drink and raw material costs still rising, the full impact of the increase in Employer’s National Insurance now being felt. This, coupled with another uplift in the National Minimum Wage, due within months, means that preserving working capital has now become critical.
For many businesses, survival will depend on holding their nerve until the spring, when expected interest rate cuts may help revive consumer spending and ease financial pressures. Those that act early and seek professional advice will retain the widest range of options – and the best chance of navigating what remains a highly challenging trading landscape.”
Previous updates:
December 2025 Update:
Confirming that November insolvencies reached 1866, around one in 189 companies – yet declined this month, sitting 8% lower than in October 2025.
Full commentary
According to Giuseppe Parla, Restructuring and Insolvency Director at Menzies LLP,
“While it is encouraging to see insolvency numbers ease slightly, retail and hospitality traders are far from feeling festive cheer. Many were hoping the delayed budget would deliver the early Christmas presentthey needed, but higher costs are still filtering through as reliefs are withdrawn and business rates begin to rise. These pressures continue to squeeze margins and test the resilience of high-street businesses. We’re still seeing financial strain across the sector, with well-known names including Leon, River Island, Poundland and TGI Fridays announcing closures, restructurings or financial pressures in recent weeks.
Another positive is that borrowing costs have begun to ease, with rates now at their lowest level in almost three years. This should give retail and hospitality businesses more flexibility and financial options as they plan their next steps going into the New Year.
But the cold reality is that higher employment costs, slowing wage growth and fragile consumer confidence remain major challenges. With Black Friday card spending down, there are growing concerns that households may be holding back in the run-up to Christmas.
Seeking help is a difficult conversation to have. But, as ever, our message to businesses is clear: please act early if you anticipate financial trouble. Doing so ensures that more options are available for you to address business issues, to secure a profitable future and remain trading.”
November 2025 Update:
Insolvency statistics increased 2% compared to last month, and sit 17% higher compared to the same month last year.
Full commentary
Giuseppe Parla, Restructuring & Insolvency Director at Menzies, warns that businesses are holding their breath until the Budget:
“Insolvency statistics have risen again as businesses continue to hold their breath ahead of a delayed Autumn Budget. The realityis that British businesses remain under pressure, impacted by rumours of tax hikes, price rises and their ability to break even in an unpredictable economic climate.
As we sit a week from the Budget, all eyes are on the Chancellor to set out how this Government plans to restore confidenceand financial stability. Businesses are now looking for clarity on growth, tax pressures, cyber risks and shifting international trading rules.
The Red Box will signal the direction of travel, but with VAT, Income Tax and NIC all under scrutiny, bumps in the road areinevitable. Unemployment is at its highest point in four years, wage growth is slowing, and many expected cuts to the Bank base rate that didn’t come. Yes, the UK avoided recession, but with only marginal GDP growth, the pressure is firmly on for a Budgetthat supports the economy without placing further strain on working people.
Seeking help is a difficult conversation to have. But, as ever, our message to businesses is clear: please act early if youanticipate financial trouble. Doing so ensures that more options are available for you to address business issues, to secure a profitable future and remain trading.”
Contact us
If you would like to discuss how the latest insolvency statistics may affect your business, our experienced Business Recovery team is here to help. We provide clear, practical advice tailored to your circumstances, whether you are facing financial pressure or planning ahead to protect your position.