Published: 27/08/2025 By Hannah Duncan
The Insolvency Service has published the insolvency statistics for July 2025 which shows little change compared to last month (June 2025 2,053) and July the previous year (2,078).Key Figures
• Total registered company insolvencies in England and Wales was 2,081
• A 1% change since June 2025
Breakdown by Insolvency Type
• Creditors’ Voluntary Liquidations (CVLs): 1,583
• Compulsory Liquidations: 339
• Administrations: 147
• Company Voluntary Arrangements (CVAs): 12
• Receiverships: 0
The 12-month rolling insolvency rate (August 2024 to July 2025) was 52.5 per 10,000 companies (1 in 190), down from 56.6 per 10,000 in the previous 12-month period
Industry Trends 12-month totals to June 2025
1. Construction - 3,984 insolvencies (17%)
• Remains the most affected sector
• Still well above pre-pandemic levels
• High insolvency rates are driven by:
• Rising material and labour costs
• Tighter access to project financing
• Insolvent subcontractors disrupting supply chains
2. Retail and Wholesale - 3,677 insolvencies (15%)
Still under pressure due to:
• Reduced consumer spending
• High energy and operational costs
• Shift to online shopping continues to impacting the high street
• Many smaller retailers are most exposed with many entering Creditors’ Voluntary Liquidations (CVLs)3. Hospitality (Accommodation & Food Services) - 3,381 insolvencies (14%)
• Continue to struggle post-pandemic:
• Staff shortages
• Weaker footfall
• Rising energy and input costs
• Insolvencies remain consistently above pre-pandemic levels4. Professional, Scientific & Technical Activities - 1,946 insolvencies (8%)
• A growing number of insolvencies, particularly among:
• Small consultancies
• Freelance and contract-based firms
• Often affected by delayed payments and reduced client budgets.5. Manufacturing - 1,953 insolvencies (8%)
• Contributing factors include:
• Ongoing supply chain disruptions
• Export challenges linked to Brexit
• Energy price volatility
• High fixed costs and thin margins leave many manufactures sensitive to demand shocks:6. Administrative and Support Services - 2,433 insolvencies (10%)
• Typically involves labour-intensive firms such as recruitment and facilities management that:
• Depend on temporary contracts and short-term demand
• Are exposed to squeezed client budgets during downturns
• Recruitment businesses have been particularly vulnerable as hiring freezes spreadThe July figures suggest overall stability, but the rise in compulsory liquidations and administrations is a warning sign that creditor pressure is building. Many firms remain vulnerable to persistent cost pressures, weaker demand, and tighter credit conditions.
Directors are advised to seek early professional advice if their businesses face financial strain, as timely restructuring can help preserve value and improve outcomes.