As 2025 comes to an end, the insolvency landscape looks very different depending on which industry you’ve been watching. Some sectors have been hit hard by rising costs and shifting consumer habits, while others have managed to remain steady or even bounced back. If there’s one lesson to carry into 2026, it’s that insolvency risk is becoming concentrated in the industries that can least afford another knock.
Retail and Hospitality: familiar struggles
Retail has once again dominated the headlines. Claire’s Accessories, a long-standing name on the high street, entered administration in September before being partially rescued by private equity. Earlier in the year, Quiz Fashion also went into administration, closing weaker stores despite a pre-pack sale keeping the brand alive. Together these cases highlight the continuing pressure from online competition, high rents, and consumers reining in spending.
Hospitality hasn’t fared much better. Upmarket Leisure Ltd, which ran several Gino D’Acampo restaurants, went into pre-pack administration after HMRC chased the business for millions in unpaid tax. Even strong brands couldn’t escape the pressure of rising wages, energy bills and fixed operating costs. For restaurants and pubs, December trading window will be a make-or-break period, but the reality is many are already running on empty.
Construction: margins under fire
In the construction industry, insolvency rates stay stubbornly high. Dozens of small and medium-sized subcontractors have gone under each month, particularly in finishing trades, plumbing and electrics. Fixed-price contracts agreed before the material and labour costs spike left many firms with no room to manoeuvre.
Although no single “household name” contractor collapsed in 2025, the scale of losses across the sector is significant. For many, it wasn’t a shortage of work that pushed them under, but the cashflow gap between paying suppliers and getting paid themselves. When the pipeline slows or a main contractor delays payments, smaller firms simply don’t survive.
Heavy industry and energy: shockwaves
One of the most notable collapses came from heavy industry. Speciality Steel UK, part of the Liberty Steel group, was ruled “hopelessly insolvent” in the High Court this year and placed into compulsory liquidation. For a sector already grappling with high energy costs and international competition, it was a stark reminder of the thin line between resilience and collapse.
In the energy world, the Lindsey Oil Refinery made headlines when its parent company entered insolvency in June. With thousands of jobs and crucial infrastructure on the line, government support and insolvency practitioners were needed to keep operations running while a buyer was found. These cases show that even nationally major industries can be exposed when costs surge and markets evolve.
Where Resilience Shone Through
Not every sector struggled. Technology and professional services firms generally held up well in 2025, with steady demand and flexible working models keeping them afloat. Healthcare and pharmaceuticals also proved resilient, reflecting consistent demand and ongoing investment. Even leisure travel enjoyed a boost as consumers prioritised holidays earlier in the year, offering a bright spot in an otherwise subdued landscape.
What to Watch in 2026
Looking forward, retail and hospitality will remain at risk. Unless household spending power improves, discretionary industries face another difficult year. Construction, too, is unlikely to see much respite, with financing tight and housebuilding uncertain.
On the other hand, growth areas are emerging. Green industries, renewable energy, and digital services look set to expand, presenting fresh opportunities but also new insolvency challenges. Insolvency Practitioners may increasingly find themselves dealing with digital assets or the complexities of valuing renewable infrastructure.
Late payments remain a perennial villain. Businesses in supply-chain heavy sectors such as logistics, wholesale, construction should expect continued pressure here. For credit managers, identifying these warning signs early will be crucial.
Final thoughts
2025 has been a year of contrasts: long-established retailers and restaurants closing their doors, heavy industries brought to its knees, and yet pockets of resilience in technology and health. The lesson is clear, insolvency doesn’t strike evenly; it strikes where costs climb the quickest and margins are already thin.
As we move into 2026, the market is unlikely to quieten. Some industries will restructure and adapt; others may not get that opportunity. For those of us in credit and insolvency, the role is the same as ever: to spot the risks, manage them effectively, and when required, guide businesses through the storm.
And if there’s one seasonal thought to leave you with: insolvency isn’t on anyone’s Christmas list, 2026 offers the chance for renewal and for businesses to rebuild on firmer ground. Here’s to a year ahead marked by smarter decisions, resilience and growth.
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