Research & Reports

Business Insolvency Statistics

Company insolvency figures, updated May 2026.

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Chapter 1

Overview

In May 2026, 2,343 businesses across the UK and Northern Ireland entered insolvency,  7% lower than the same month last year and a 2% increase from April 2026.

This increase follows a dip in April and is only a modest uptick compared with the more significant rises recorded in February and March. The pattern is broadly consistent with the same period last year, however levels remain slightly below those observed in May 2025.

Despite the consistent trends, insolvencies continue to be higher than historical levels. Businesses are under sustained pressure from rising operating costs, ongoing supply chain disruption linked to geopolitical tensions, high interest rates, and weak consumer demand. Collectively, these factors are affecting margins, with businesses less resilient to further economic shocks.

May continued to highlight the deepening pressures on the UK high street. This follows earlier announcements in 2026, including the closure of Claire’s and GAME’s remaining standalone UK stores. During May, luxury handbag brand Radley entered a pre-pack administration, while Quiz Clothing confirmed plans to close all of its remaining UK stores, further highlighting the ongoing pressures.

May at a glance:

  • Total Insolvencies: 2,343 insolvencies across the UK and Northern Ireland.
  • Month-over-Month Change: 2% vs. April 2026
  • Year-on-Year Change: -7% vs. May 2025
  • Sector Impact: Construction continues to be the most affected sector, with 387 insolvencies

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 2,343 businesses across the UK and Northern Ireland entered insolvency in May 2026, representing a 2% increase from April and an 7% decrease compared with the same period in 2025.

Although the year-on-year figures suggest relative stability, significant underlying pressures remain. Many businesses 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: [email protected]

Chapter 1

Insolvencies by Sector

The total number of insolvencies by sector YTD.

Construction remained the UK's hardest-hit sector in April, with 387 firms entering insolvency, accounting for 17% of all business failures that month.

Other sectors that are traditionally more exposed to high insolvency rates also saw an increase. Wholesale and Retail experienced 299 insolvencies, while Accommodation and Food Services saw 325 failures, an increase on the previous month. 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-May 2026) breakdown of insolvencies by sector, comparing trends over the past four years (2022–2026) to highlight sector-specific shifts and challenges.

Chapter 1

Q1 2026 Analysis

Total insolvencies increased sharply over Q1 2026, with volumes rising steadily from January and peaking in March. March recorded a particularly strong uplift, taking total insolvencies 6% above Q1 2025 levels. However, this trend mirrors the seasonal build‑up seen last year, suggesting insolvency levels, while high by historical standards, are broadly stable.

Insolvencies remain heavily concentrated in construction and consumer‑facing sectors. Construction continued to record the highest volumes across the quarter, representing 1,159 of the 7,224 total insolvencies between January-March. Wholesale and retail insolvencies also rose through the quarter, highlighting ongoing pressures from tight margins and elevated costs, alongside weaker demand.

Overall, Q1 2026 data suggests that although insolvency pressures persist, the risk is not worsening.

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.