The Insolvency Service has published its most recent figures for company insolvencies in the UK for May 2025.
In May 2025, there were 2,238 registered company insolvencies in England and Wales, representing an 8% increase from the total of 2,074 in April 2025. Compared to May 2024, this is a 15% rise from 1,946 insolvencies, indicating a worsening economic trend.
Of the 2,238 registered company insolvencies in May, there were:
Figure 1: The total number of company insolvencies in May 2025 was higher than in April 2025, driven by an increase in CVLs.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures).
In May 2025, Creditors' Voluntary Liquidations (CVLs) made up 77% of all company insolvencies. The number of CVLs rose by 11% from April 2025 and was 13% higher than in the same month of the previous year, May 2024.
The number of compulsory liquidations in May 2025 was 7% lower than the 10-year high recorded in April 2025, but 32% higher than in May 2024 and 31% higher than the monthly average for 2024.
The number of administrations in May 2025 was 28% higher than in April 2025 and 12% higher than in May 2024.
The number of CVAs in May 2025 was 42% lower than in April 2025 and 26% lower than in May 2024
The five industries that experienced the highest number of insolvencies in the 12 months to April 2025 were:
CoCredo has been a leading provider of business credit checks and monitoring solutions in the UK for over twenty years. Recently, we won at the CICM British Credit Awards 2025, highlighting our commitment to excellence. We utilise data from over 240 countries to help protect your business from bad debt. Our dedication to exceptional customer service and innovative products empowers your business to succeed in a competitive market.
CoCredo’s Managing Director, Dan Hancocks, says, “The latest company insolvency data for May 2025 paints a worrying picture — but not necessarily for the reasons you might expect. While the total number of insolvencies has increased by 15% year-on-year, the true story lies beneath the headline figures."
"The continued rise in Creditors' Voluntary Liquidations (CVLs) tells us one thing: more business owners are taking decisive action to wind down operations before creditors or the courts force their hand. In May alone, CVLs made up 77% of all insolvencies — an 11% increase from April.
This trend indicates that directors are taking a proactive step by choosing to exit challenging situations rather than persevering. It's a smart way to protect their reputations and avoid any bigger financial issues down the line.”
If your customers or suppliers show signs of distress—delayed payments, shrinking credit limits, or legal notices—our company credit checking tools can help you act before the crisis reaches your door.
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