Company insolvencies in England and Wales rise 8% in May

The number of registered company insolvencies in England and Wales rose to 2,238 in May 2025, according to the latest figures from the Insolvency Service. This represents an 8% increase from April 2025, when there were 2,074 insolvencies, and a 15% rise compared with May 2024, which saw 1,946 cases. The Insolvency Service said the increase contributes to a broader trend observed in the first five months of 2025, with monthly insolvency figures running slightly above those recorded in 2024 and aligning with levels seen in 2023, which had the highest annual insolvency total in three decades. The bulk of May’s insolvencies were creditors’ voluntary liquidations (CVLs), accounting for 1,734 cases. This was followed by 354 compulsory liquidations, 136 administrations, and 14 company voluntary arrangements (CVAs). No receivership appointments were recorded during the month. While the number of compulsory liquidations fell by 7% from April’s 10-year high, it remained above both the monthly average for 2024 and the number reported in May of last year. CVLs continued their upward trajectory, increasing from the previous month and surpassing the 2024 monthly average. Administrations also rose in May, whereas CVAs saw a slight decrease. Overall, in the 12-month period from 1 June 2024 to 31 May 2025, one in every 189 companies on the Companies House effective register entered insolvency. This equates to a rate of 53.0 per 10,000 companies, a slight decline from the 55.6 per 10,000 companies recorded in the preceding 12-month period. Mark Ford, partner in the Restructuring and Recovery team at S&W, said: “The impact of sluggish economic growth, high borrowing costs, low consumer confidence and high inflation in recent years has eroded cash reserves for businesses and left some in a perilous position. “Businesses are now facing newer challenges that threaten their viability and this means we are likely to continue to see a steady stream of company insolvencies in the coming months.” Simon Michaels, director at HW Fisher Business Solutions, said: “Today's insolvency figures reflect the harsh reality facing many UK businesses, particularly SMEs, as they navigate an increasingly challenging economic environment. “April's national insurance and minimum wage increases have pushed many businesses beyond their breaking point. Companies that have already cut costs and raised prices have nowhere left to turn when faced with additional financial pressures.” He added: “Poor cash flow management remains the silent killer of UK businesses. Even profitable companies can fail rapidly when earnings and outgoings don't align and with 1 in 2 businesses having overdue and late payments owed to them, this problem is only getting worse. “Businesses must seek help early. There are a range of solutions available, from cash flow forecasting and accounts receivable management to expense monitoring, tax planning and strategic advisory services, that can prevent problems before they occur. But these are only effective if action is taken before reaching a crisis point.”

Company insolvencies in England and Wales rise 8% in May

The bulk of May’s insolvencies were creditors’ voluntary liquidations (CVLs), accounting for 1,734 cases

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