Research & Reports

Business Insolvency Statistics

Company insolvency figures, updated August 2026.

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Chapter 1

Overview

UK business insolvencies declined in August 2026, offering some signs of improvement despite businesses continuing to face significant economic and operational pressures.

A total of 2,074 UK businesses entered insolvency across the UK and Northern Ireland in August, a 19% decrease compared with July and a 10% fall year-on-year.

The latest figures build on the improvement seen earlier in the year. Insolvencies fell by over 16% in Q2 compared to Q1, and August's decline suggests this downward trend could continue through the third quarter. 

However, the broader picture remains mixed. Insolvency levels are still elevated by historical standards across several major sectors, highlighting the continued financial strain facing UK businesses.

Businesses are battling rising operating costs, high interest rates, weak consumer demand and ongoing supply chain disruption linked to geopolitical tensions. Together, these pressures are squeezing margins and leaving many businesses without the capacity to absorb further economic shocks.

The challenges facing the UK high street remain clear. Well-known brands including TGJones, GAME, Quiz and The Revel Collective - owner of Revolution, Revolución de Cuba, Peach Pubs and Founders & Co. - have entered administration this year. More recently, Beefeater announced the closure of all its locations.

August at a glance:

  • Total Insolvencies: 2,074 insolvencies across the UK and Northern Ireland.
  • Month-over-Month Change: -19.39% vs. July 2026
  • Year-on-Year Change: -10% vs. August 2025
  • Sector Impact: Construction continues to be the most affected sector, with 350 insolvencies

If you want to re-use this data, please contact press@creditsafeuk.com

Chapter 1

Insolvencies by Month

Total number of insolvencies by month.

A total of 2,074 businesses across the UK and Northern Ireland entered insolvency in August 2026, a decrease both from July and year-on-year.

The year-on-year figures are positive, suggesting relative stability. However, this is not felt equally across all businesses. Many companies continue to grapple with relentless cost pressures, including higher wage bills and supply chain disruption. Ongoing geopolitical tensions are also contributing to a heightened uncertainty in the market, further exacerbating risk for businesses already operating on thin margins.

To re-use this data, contact: press@creditsafeuk.com

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Construction remained the UK's hardest-hit sector in August, with 350 firms entering insolvency, accounting for 17% of all business failures that month.

Other sectors that are traditionally more exposed to high insolvency rates include Wholesale and Retail, which experienced 290 insolvencies, and Accommodation and Food Services, which saw 261 failures. Combined, these two sectors represent 27% of all insolvencies for the month, underscoring their vulnerability amidst ongoing economic and geopolitical pressures.

The table below provides a year-to-date (January-August 2026) breakdown of insolvencies by sector, comparing trends over the past five years (2022–2026) to highlight sector-specific shifts and challenges.

Chapter 1

Q2 2026 Analysis

Total insolvencies eased during Q2 2026, with 7,224 total insolvenices in Q1 compared to 6,869 in Q2. This suggests some stabilisation in the rate of business failures. 

Despite this improvement, insolvency levels remain relatively high by historical standards and continue to reflect ongoing financial pressures across parts of the economy.

Insolvencies remained heavily concentrated in Construction and other consumer-facing sectors. Construction recorded 1,177 insolvencies between April and June, and Wholesale and Retail followed with 885, highlighting the ongoing cost pressures and weak consumer demand. Despite this, insolvency levels in both sectors for the quarter were lower than Q1.

Overall, Q2 2026 data suggests that while insolvency pressures remain, the sharp increase experienced in Q1 was not sustained. This points to a degree of stabilisation.

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.