The Insolvency Service released its latest figures for company insolvencies in the UK in February 2025.
The number of registered company insolvencies in England and Wales was 2,035 in February 2025, 3% higher than in January 2025 (1,978) but 7% lower than the same month in the previous year (2,188 in February 2024).
Of the 2,035 registered company insolvencies in February, there were:
Figure 1: The total number of company insolvencies in February 2025 was higher than in January 2025, driven by increased compulsory liquidations.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)
In February 2025, CVLs accounted for 75% of all company insolvencies. The number of CVLs decreased by 2% from January 2025 and was 13% lower compared to the same month last year (February 2024) after seasonal adjustment.
The seasonally adjusted number of compulsory liquidations in February 2025 was 41% higher than in January 2025 and 49% higher than in February 2024. Compulsory liquidations have increased in recent months. February 2025 saw the highest monthly number since September 2014.
The number of administrations in February 2025 was 18% lower than in January 2025 and 27% lower than in February 2024 after seasonal adjustment.
The number of CVAs was 42% lower in February 2025 than in February 2024 and 50% lower than in January 2025. The numbers remain low compared to historical levels. Due to low volumes, CVAs are not seasonally adjusted.
The five industries that experienced the highest number of insolvencies in the 12 months to January 2025 were:
For over twenty years, CoCredo has established itself as one of the UK’s leading providers of business credit reports and credit monitoring solutions. Recent winners at the CICM British Credit Awards 2025, we leverage data from over 240 countries to help protect your business against bad debt. We are committed to delivering exceptional customer service and innovative products that enable your business to thrive in a competitive market.
CoCredo’s Managing Director, Dan Hancocks says, “The latest Company Insolvency Statistics for February 2025 reflect a complex and challenging environment for businesses in England and Wales.”
“The rise in compulsory liquidations, which reached 319, indicates that more businesses are being forced into closure by creditors, highlighting ongoing financial pressures.”
This trend is not isolated to the UK. Similar patterns of business distress are emerging globally. In France, tech start-ups are facing an increase in bankruptcies. A recent Reuters report highlighted that higher interest rates and economic uncertainty are placing significant strain on the French tech sector, forcing many start-ups to restructure or close altogether.
Australia is also grappling with a surge in business failures, particularly affecting the hospitality sector. According to The Australian, rising costs, staffing shortages, and slowing consumer spending have driven many businesses to collapse, with small and medium-sized enterprises (SMEs) bearing the brunt of the downturn.
The pressures facing businesses globally underscore the need for targeted support and strategic adaptation. While the slight increase in UK insolvencies in February, but 7% lower than the same month in the previous year, offers some hope, the ongoing sector-specific challenges—especially in construction—signal that businesses are not yet out of the woods. A combination of financial resilience, better access to credit, and strategic cost management will be crucial in navigating the year ahead.
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