| Stats published | 16 June 2026 by Insolvency Service |
| Dominant type | Creditors voluntary liquidations - around 75% of cases |
| Highest sector | Construction - nearly 4,000 insolvencies in 2025 |
| Retail | 13,000+ chain store closures in 2025 |
| Level vs pre-pandemic | Significantly above pre-pandemic averages |
Last reviewed: 18 June 2026
The Insolvency Service published company insolvency statistics for May 2026 on 16 June. Insolvency levels in England and Wales remain significantly above pre-pandemic averages, continuing the elevated pattern that has persisted since government support measures ended. Monthly totals have in some periods exceeded 2,000 cases with construction, retail and hospitality consistently accounting for the largest shares of failures.
The Dominant Type: Creditors Voluntary Liquidations
Creditors voluntary liquidations account for around three quarters of all company insolvency cases. A CVL occurs when directors of an insolvent company resolve to wind up the business. It is the most common route for small and medium-sized businesses as it allows directors to manage the process in an orderly way rather than waiting for a creditor to petition for compulsory liquidation. The prevalence of CVLs reflects the UK business population: the vast majority of insolvent companies are small with limited assets and a straightforward creditor base.
Construction: The Persistent Failure Leader
Construction recorded nearly 4,000 insolvencies in 2025 - the highest of any sector. The conditions have not improved in 2026: thin margins on fixed-price contracts, long payment chains, material cost inflation, higher labour costs from NI increases, reduced public sector infrastructure spend, and the collapse of retrofit funding schemes. The Zentia and Agetur cases confirmed this week are consistent with the broader pattern.
Retail: High Street Closures Continuing
More than 13,000 chain store closures were recorded in 2025 and the pace continues into 2026. Recent failures include a UK leather retailer company entering liquidation and a supermarket chain closing a 42-year-old branch. The structural challenge is well established: e-commerce competition, business rates pressure, and consumer spending constrained by energy bills and mortgage costs. HMRC's assertive recovery of tax debt has been a deciding factor in several high-profile retail insolvencies.
What Suppliers and Trade Creditors Should Do
For businesses supplying companies showing financial distress, credit risk management is the priority. Reducing exposure before administration is appointed is far preferable to filing an unsecured creditor claim afterward. Goods supplied after an administration appointment date are paid as an expense of the administration and rank ahead of pre-appointment unsecured debt. Goods supplied before appointment become a pre-appointment unsecured claim unlikely to be paid in full. A retention of title clause in supply contracts can preserve the ability to recover unpaid goods if they have not been consumed or sold on.
Frequently Asked Questions
How many UK companies went insolvent in 2025?
Construction alone recorded nearly 4,000 insolvencies in 2025. Monthly totals across all insolvency types in England and Wales have in some periods exceeded 2,000 cases in 2025 and 2026. Full annual statistics are published by the Insolvency Service at gov.uk/insolvency-service.
What is a creditors voluntary liquidation?
A CVL is a formal insolvency process in which directors of an insolvent company resolve to wind up the business. It is initiated by the directors rather than forced by a creditor and accounts for around three quarters of all UK company insolvencies. A licensed insolvency practitioner is appointed as liquidator to realise assets and distribute proceeds to creditors in the statutory order of priority.
What is the difference between administration and liquidation?
Administration is a rescue-oriented process aimed at saving the business as a going concern or achieving a better result for creditors than liquidation. Liquidation winds up the company by selling assets and dissolving it. Administration can lead to liquidation if rescue is not achievable. The key difference is that administration preserves the possibility of business continuity while liquidation does not.
