The Insolvency Service released its latest figures for company insolvencies in the UK in January 2025.
After seasonal adjustment, the number of registered company insolvencies in England and Wales was 1,971 in January 2025. This represents a 6% increase compared to December 2024, when there were 1,852 insolvencies, and an 11% increase compared to January 2024, which reported 1,780 insolvencies.
Of the 1,971 registered company insolvencies in January, there were:
Figure 1: The total number of company insolvencies in January 2025 was higher than in December 2024 and January 2024.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)
In January 2025, company voluntary liquidations (CVLs) comprised 78% of all insolvencies. The number of CVLs rose by 9% from December 2024 and was 14% higher than in January 2024 after seasonal adjustment.
The number of compulsory liquidations adjusted for seasonal variations in January 2025 was 5% lower than in December 2024 and 5% lower than in January 2024.
The number of administrations in January 2025 was 10% higher than in December 2024 and 9% higher than in January 2024 after seasonal adjustment.
The number of CVAs was 13% lower in January 2025 than in January 2024 and 18% lower than in December 2024. The numbers remain low compared to historical levels.
The five industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in 2024 were:
For most sectors, the numbers of insolvencies in 2024 were similar to or lower than those in 2023.
For over twenty years, CoCredo has established itself as one of the UK’s leading providers of business credit reports and company credit monitoring solutions. Recent winners at the CICM British Credit Awards 2025, we leverage data from more than 240 countries to empower your business against bad debt. We are dedicated to exceptional customer service and innovative products to protect your business and help you thrive in a competitive market.
CoCredo’s Managing Director, Dan Hancocks, says, “The outlook remains uncertain. While businesses may hope for relief in the form of lower interest rates later in 2025, the broader economic landscape suggests that insolvency rates could continue to rise. The decline in consumer spending, rising costs, and persistent financial obligations may lead more companies to experience distress, especially in vulnerable industries.”
The retail sector has been significantly affected. Notable chains like Quiz Clothing and In The Style have faced severe financial challenges, with some entering administration.”
Despite efforts by the Bank of England to stimulate growth, forecasts suggest that rising insolvencies may continue throughout 2025, potentially leading to an even higher number of business failures.”
Considering the latest insolvency figures, we recommend you take proactive steps to ensure the financial stability of your business and your suppliers.”
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