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Firms in peril as insolvency jumps by 8%

June 22, 2025

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Sunday Express

THE number of UK companies going bust increased in the last year, with retail and construction firms accounting for nearly a third of all insolvencies.

- By Mauricio Alencar

Official data from the Insolvency Service showed that company insolvencies in May grew by 8% month-on-month.

The number of insolvencies last month hit 2,074, which was also 15% higher than levels seen in April last year.

The rate of insolvency at the start of the year has been roughly double that seen in 2020, with more companies opting for creditors' voluntary liquidations where directors close down businesses with the agreement of creditors.

The Insolvency Service said trends since the second half of 2022 have been at levels last experienced in 2008 and 2009, following the financial crash.

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