Research & Reports

Business Insolvency Statistics

Company insolvency figures, updated May 2025.

3 Mins
Chapter 1

Overview

The latest figures reveal that insolvency numbers remained relatively stable across the UK and Northern Ireland in May 2025, with 2,510 businesses entering insolvency. This marks a 1% increase from April, and an 8% drop compared to the same period last year.

Rising costs and continued economic uncertainty remain key pressures. Wage increases, higher National Insurance contributions, and a reduced threshold have all contributed to rising overheads for businesses already facing tough conditions.

May at a glance:

  • Total Insolvencies2,510 insolvencies across the UK and Northern Ireland.
  • Month-over-Month Change: Up 1% from April
  • Year-on-Year Change: Down 8% from May 2024
  • Sector Impact: Construction remains the most affected sector, with 409 insolvencies

With many businesses having already raised prices and cut expenditure to stay afloat, further cost increases could prove unsustainable, particularly for SMEs.

Creditsafe gives you the real-time insights and early warnings you need to spot trouble before it hits your business.

If you want to re-use this data, please contact [email protected]

Chapter 1

Insolvencies by Month

Total number of insolvencies by month.

A total of 2,510 businesses across the UK and Northern Ireland became insolvent in May. A near standstill in movement, up just 1% from April and 8% down on last year. Promising at first glance, but many businesses are now facing a fresh wave of challenges.

Insolvency levels remain well above pre-pandemic norms, largely driven by ongoing financial pressures and continued supply chain disruption. The rise in employers’ National Insurance contributions and the minimum wage increase in April have added fresh challenges, especially for businesses that rely on part-time or lower-paid workers.

In a climate where risk builds quietly, Creditsafe gives you the tools to stay ahead.
With real-time monitoring and instant credit alerts, you can track financial health, spot shifts in creditworthiness, and make confident decisions before issues escalate.

To re-use this data, contact: [email protected]

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Construction remained the UK’s most affected industry in May, with 409 firms becoming insolvent, accounting for 16% of all business failures that month.

Two notable collapses highlight the sector's persistent challenges. Corbyn Construction, a major groundworks contractor, entered administration after struggling with losses and mounting court judgments. Administrators have also been appointed for commercial building manufacturer Jans Offsite Solutions. The Antrim-based firm, despite growing revenues, was weighed down by sustained multi-million-pound losses.

The Wholesale and Retail and Accommodation and Food services sectors continue to feel the pressure, with 355 and 334 companies entering insolvency in May 2025. Financial strains and shifting customer expectations continue to reshape the landscape. Wholesale and Retail businesses face tighter budgets as shoppers cut back, while Accommodation and Food services grapple with unpredictable demand and staffing shortages, challenges that intensify pressure across both sectors.

It's clear that 2025 is shaping up to be another tough year. With costs rising steadily and the shadow of global trade uncertainty hanging over many industries, businesses are bracing themselves for ongoing pressures. Success will come down to how well they can adapt and make decisions amid a climate that remains far from certain.

The table below provides a year-to-date (January–December 2025) breakdown of insolvencies by sector, comparing trends over the past four years (2021–2025) to highlight sector-specific shifts and challenges.

Want to explore the data for yourself?

Whether you want to understand the impact of Insolvencies across a group of sectors or the likelihood of an individual company becoming insolvent, you can find all of this data and more within the Creditsafe platform.

Chapter 1

Methodology

Creditsafe uses the following statuses to determine if a company has become insolvent and will count insolvency based on its first insolvency trigger from one of the statuses below:

  • In Liquidation.
  • Administrator Appointed.
  • Appointment of Liquidator.
  • Meeting of Creditors.
  • In Administration.
  • In Receivership.
  • Administrative Receiver Appointed.
  • Administration Order.
  • The company is wound-up.