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 17/1/26.
December 2025 commentary:
November insolvencies ease but retail and hospitality remain under pressure
Confirming that November insolvencies reached 1866, around one in 189 companies – yet declined this month, sitting 8% lower than in October 2025, and 7% lower than in October 2024.
Top sectors include:
- Construction (3,973, 17% of cases with industry captured),
- Wholesale and retail trade; repair of motor vehicles and motorcycles (3,768, 16% of cases with industry captured),
- Accommodation and food service activities (3,423, 14% of cases with industry captured),
- Administrative and support service activities (2,459, 10% of cases with industry captured),
- Manufacturing (1,991, 8% of cases with industry captured).
- Professional, scientific and technical activities (1,985, 8% of cases with industry captured).
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would deliver the early Christmas presentthey needed, but higher costs are still filtering through as reliefs are withdrawn and business rates begin to rise.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.”
Previous updates:
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.”
October 2025 Update:
The stats show that insolvencies stayed at a similar rate to last month, dropping from 2,045 to 2,000. September 2024 presented a similar number (1967).
Full commentary
The stats show that insolvencies stayed at a similar rate to last month, dropping from 2,045 to 2,000. September 2024 presented a similar number (1967).
CVLs account for 79% of all company insolvencies, remaining high and consistent with last month, and the year prior.
Construction, wholesale and retail trade, and accommodation and food service remain in the top three, comprising 47% of all company insolvencies.
“Budget uncertainties, rumours of tax and price hikes, and inflation set to be the highest among the G7 club, all point towards a landslide of slow to no growth. Creditors’ Voluntary Liquidations (CVLs) comprise an alarming 79% of all insolvencies, suggesting that UK businesses are running out of options to protect margins and plan ahead.
With the Bank’s base rate review in early November, many are holding their breath for an economic kickstart. If interest rates are unlikely to budge, and prices continue climbing, all eyes will turn to the delayed Budget for the nation to secure renewed certaintyand stability, and a way forward.
As ever, our message to businesses is clear: act early if you anticipate financial trouble. Doing so ensures that more options are available for you to secure a profitable future and remain trading.”
Contact us
Giuseppe Parla, Restructuring & Insolvency Director at Menzies LLP, says the festive season remains make-or-break for the sectors that underpin Christmas spending:If you would like any further information on the topics above, please do not hesitate to contact our Business Recovery team, or contact us via the enquiry button below: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.