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Registered company insolvencies in England and Wales totalled 1,878 in February 2026, marking a 7% increase from January but 7% lower than the level recorded in February 2025.
The February figures included 1,473 creditors’ voluntary liquidations (CVLs), 249 compulsory liquidations, 146 administrations and 10 company voluntary arrangements (CVAs).
Although insolvency levels have risen from the unusually low levels seen during 2020 and 2021, the current rate of 51.5 per 10,000 companies remains well below the peak of 113.1 recorded during the 2008–09 financial crisis.
The difference largely reflects the fact that the number of companies on the effective register has more than doubled over that period.
Despite the month-on-month increase, the 12-month rolling insolvency rate edged down slightly to 51.5 per 10,000 companies, compared with 52.3 in the previous year.
According to Matthew Richards, joint head of restructuring and insolvency at Azets, the uptick in February reflects the lingering effects of a difficult festive trading period combined with tighter creditor behaviour and continued challenges accessing finance.
He said: “We know this Christmas was a disappointing one for many businesses, with inflation the real driver of increased retail sales, footfall falling as more customers turned to online shopping, and people being careful about how and where they spent their money.
“Coming off the back of a long period of rising costs and falling revenues for firms in the retail and hospitality sector, this has driven distress and requests for insolvency advice and support, and will continue to do so now we’re into a time when demand is lower in both industries.”
He added: “The ongoing war in Iran will have a similar ripple effect on inflation and energy costs to the one that followed the start of the Ukraine conflict and is likely to lead to inflation rising and further increases in outgoings. There won’t be a business in the country that won’t be affected by this and it could be a cost too far for those whose finances are tight and whose customer base won’t be able to absorb increases in prices.”
Additionally, Richards noted that some sectors are likely to feel the impact sooner than others, particularly those exposed to fuel costs and international travel.
