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 17/10/25.
August 2025 commentary:
UK insolvencies rise in August as retail and hospitality brace for tough Christmas
Company insolvencies declined in August 2025, 2% lower than in July 2025, but remain 6% higher than in August 2024.
CVLs remain high and comprise 78% of all company insolvencies – a 1% increase on the month prior, and sit 5% higher than in August 2024.
The six industries that experienced the highest number of insolvencies in the 12 months from August 2024 to July 2025 were:
- Construction (3,973, 17% of cases with industry captured),
- Wholesale and retail trade; repair of motor vehicles and motorcycles (3,673, 16% of cases with industry captured),
- Accommodation and food service activities (3,371, 14% of cases with industry captured),
- Administrative and support service activities (2,405, 10% of cases with industry captured),
- Manufacturing (1,959, 8% of cases with industry captured).
- Professional, scientific and technical activities (1,941, 8% of cases with industry captured).
The top three comprise 47% of all insolvencies in this period.
According to Giuseppe Parla, Restructuring and Insolvency Director at Menzies:
“With more high street casualties hitting the headlines, from Bodycare’s administration and store closures, to Poundland’s near miss and record sector job losses, UK services are running out of options to protect margins and plan ahead of a critical festive season.
Today’s statistics show that the hospitality sector accounts for 14% of all insolvencies in the last year, while retail takes 16% of the share. While reports show retail sales have ticked upward, experts caution that this growth could reflect price inflation rather than stronger demand.
With economic growth stalling, and interest rate cuts expected to be missed in the upcoming Budget, the nation waits for delayed relief to revive consumer spending. The reality is that businesses remain squeezed by heavy tax burdens, rising staff costs, and fragile consumer confidence, which raises considerable concern in the run-up to Christmas.
Sector groups are urging VAT cuts to ease inflationary and cost pressures, but with little fiscal headroom, such relief is uncertain – but it could prove a lifeline for operators battling soaring costs. For many retailers, the festive season will once again decide whether they can weather the storm.
As ever, our message would be for businesses to act early if they anticipate financial trouble. Doing so ensures that more options are available for you to secure a profitable future and remain trading.”
Previous updates:
April 2025 Update:
April 2025 saw higher compulsory liquidation numbers than in March, while CVLs were at a similar level.
Full commentary
According to Giuseppe Parla, Business Recovery Director at Menzies:
“An uptick in corporate insolvencies is a clear sign that many UK businesses are still walking a financial tightrope. April brought a series of tax changes that may have disrupted cash flow for smaller firms already grappling with rising input costs and soft consumer demand. This may have tipped the balance for already-vulnerable businesses.
On top of that, renewed global uncertainty – including the threat posed by US tariffs on trade partners across the world – is making forward planning even harder for manufacturers and exporters. Until there is greater stability across tax, trade and interest rate policy, we expect further volatility in insolvency trends – especially in sectors where margins remain tight and confidence is low.
While the recent reduction in the Bank of England’s base rate – and the expectation of further cuts later in 2025 – may well bring insolvency numbers down, as more businesses will look to secure cheaper funding, it may be an act too little and too late.
As ever, our message would be for businesses to act early if they anticipate financial trouble. Doing so ensures that more options are available for you to secure a profitable future and remain trading.”
March 2025 Update:
Despite company insolvencies falling in March, they remain much higher than last year, with the construction sector taking the brunt of the pain.
Full commentary
According to John Cullen, Business Recovery Partner at Menzies:
“If recession is next in a line of challenges for British Business, alongside a heavier tax burden and a decline in investor and lending confidence, we may be hurtling towards a new wave of business insolvencies.
While the impact of Trump’s tariffs on the UK are yet to be felt, supply costs continue to rise, and with the US being the UK’s biggest trade partner, considerable concern is raised for British construction, manufacturing, logistics, retail and trade as they attempt to adapt to an ever-changing geo-political environment.
As ever, our message would be for businesses to act early if they anticipate financial trouble. Doing so ensures that more options are available for you to secure a profitable future and remain trading.”
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