Business insolvencies fall by 6.7%

Latest figures from the Insolvency Service have shown that the number of business insolvencies in England and Wales decreased by 6.7% to 1,866 in November 2025, compared to the November 2024 figure of 2,001.

The business insolvencies consisted of 250 compulsory liquidations, 1,461 creditors’ voluntary liquidations (CVLs), 136 administrations, 18 company voluntary arrangements (CVAs) and one receivership appointment.

CVLs accounted for 78% of all company insolvencies. The number of CVLs decreased by 7% from October 2025 and was 7% lower compared to the same month last year (November 2024).

The number of compulsory liquidations in November 2025 was 21% lower than in October 2025 and 10% lower than in November 2024. In 2025 so far, the average monthly number of compulsory liquidations is 17% higher than the 2024 monthly average.

The number of administrations in November 2025 was 12% higher than in October 2025 and 5% higher than in November 2024. The average monthly number of administrations so far in 2025 is lower than the 2024 monthly average.

Wholesale, retail and hospitality traders accounted for 30% of all company insolvencies in the year to November 2025, with 7191 businesses affected – highlighting that while pressures remain elevated on the UK high street, the latest data suggests some stabilisation as firms enter the most important trading period of the year.

Giuseppe Parla, Restructuring & Insolvency Director at Menzies LLP said “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would deliver the early Christmas present they needed, but higher costs are still filtering through as reliefs are withdrawn and business rates begin to rise.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 interest rates have fallen faster than expectations, ​and 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.”

Matthew Richards, Joint Head of Restructuring and Insolvency at international accountancy and business advisory group Azets, said :Despite the month-on-month fall, corporate insolvency numbers for the year to date are higher than they were this time last year, which reflects the ongoing pressures faced by firms and the toll it’s taking on their ability to stay solvent. Liquidations make up the overwhelming majority of these, as firms are either being wound-up by those they owe money to or because their directors can’t see any way of turning their situation around. With little sign of any relief for the business community on the horizon, it’s highly likely insolvencies will increase in the new year and that 2025 will see higher numbers than 2024. 

“Corporate insolvencies are being driven by a triple whammy of economic issues, creditor pressure and management fatigue. Businesses have spent years attempting to trade through rising costs, shrinking margins, and a customer base that is spending reluctantly. Many management teams have simply run out of steam and are ready to either sell up or shut the doors. On top of this, creditors continue to chase down debts in an attempt to balance their own books, with HMRC leading the charge as they attempt to recover funds for the public purse.

“Many businesses were hoping for some form of relief from the Chancellor last month, but the announcement of the increases to the National Minimum Wage and the planned changes to employment rights will make it harder for firms to retain, recruit and grow.

For firms in the retail and hospitality sector, the Chancellor has taken the sparkle out of Christmas. Both industries were hit hard by the changes to Employer National Insurance and National Minimum Wage last year, and further increases to the National Minimum Wage will put further strain on a sector which has many firms near breaking point. This time of year is a critical one for both industries, but only time will tell whether it provides a badly needed boost or the final blow for businesses.

“While we appreciate the Chancellor has a tough line to walk when it comes to managing the economy and bringing down the national debt, the reality is that any change in economic policy affects business confidence and firms’ profits and plans. We suggest that should be considered as the key criteria for any future fiscal policy proposals, especially after the impact the last two Budgets had on business growth, health and confidence.

“Anyone who is worried about their business and its finances should seek advice as soon as possible. This is such a hard topic to raise – let alone discuss – but speaking to an advisor at a time when your worries are new gives you more options, more time to take a decision about your next step and a better chance of overcoming your issues than if you’d waited and the problem had snowballed.”

Tom Russell, R3 President said “Corporate insolvencies have declined by 8% in November compared to October and are down by 7% on the same month last year and 18% on 2023’s figure.

“When considered alongside a drop in the inflation rate to 3.2% and the recent cut in the interest rate to 3.75% it may give a glimmer of hope to struggling businesses in the run up to Christmas and offer business owners some cautious optimism that conditions may begin to improve next year.

“That said, company insolvency levels remain stubbornly high compared to five years ago, reflecting difficult trading conditions. In addition, the unemployment rate has reached a near six-year high of 5.1% as employers have been delaying recruitment and investment decisions. Sustained progress on inflation and employment will be key to restoring confidence in the long term.

“For hospitality businesses especially, the next few weeks could make or break their business. Many face a sharp drop-off in trade after festivities end with January bringing cashflow pressures caused by the rent quarter and potentially larger supplier, VAT and payroll tax payments reflecting a busy December. Our members typically see an increase in enquiries and distress calls from this sector early in the New Year.

“Retailers also face post-Christmas challenges, including high levels of returned goods at a time when wages and other costs still have to be met.”