According to the latest figures from the Insolvency Service, there were 1,878 insolvencies in February 2026, a 7% increase from January 2026, when there were 1,749.
It did, however, see a 7% decrease compared to February 2025, when there were 2,015 insolvencies, which may be down to businesses winding down after the festive period.
Of the 1,744 registered company insolvencies in February, there were:
Figure 1: The total number of company insolvencies in February 2026 was higher than in January 2026, driven by an increase in CVLs.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)
In February 2026, Compulsory Voluntary Liquidations (CVLs) made up 78% of all company insolvencies. The number of CVLs increased by 11% compared to January 2026, but was 3% lower than in February 2025.
The number of compulsory liquidations in February 2026 was 2% lower than in January 2026 and 35% lower than in February 2025. Compulsory liquidations in February 2026 were 20% lower than the 2025 monthly average.
The number of administrations in February 2026 was 4% lower than in January 2026, 30% higher than in February 2025, and 17% higher than the 2025 monthly average.
The number of CVAs in February 2026 was 23% lower than in January 2026 but 43% higher than in February 2025. Numbers remain low compared to historical levels.
The six industries that experienced the highest number of insolvencies in the 12 months to January 2026 were:
Figure 2: For most sectors, the number of insolvencies in 2025 was similar to that in 2024.
At CoCredo, we’ve been offering company credit check and monitoring services across the UK, Ireland, and globally for over 20 years. Our recent success at the CICM British Credit Awards 2025 reflects our ongoing commitment to delivering exceptional service and our passion for excellence.
CoCredo’s MD, Dan Hancocks, says, “The insolvency figures for February 2026 reveal a concerning trend: many small and medium-sized enterprises (SMEs) are still facing pressure, with insolvencies increasing month over month to reach 1,878. However, these numbers are lower than those reported at the same time last year, indicating that the situation is not deteriorating as rapidly as some might have anticipated.”
“What stands out is the ongoing dominance of Creditors’ Voluntary Liquidations, which continue to account for the majority of cases, indicating that many business owners are choosing to close operations in a controlled manner rather than being forced into insolvency by creditors. It reflects sustained financial pressure in sectors such as retail, hospitality, and construction, where margins remain tight and the cost of inflation continues to bite.”
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