Company Insolvency Statistics August 2025
Directors are still operating at a high-pressure baseline.
The Insolvency Service recorded 2,048 registered company insolvencies in August 2025 6% higher than August 2024 and 2% lower than July 2025.
Month-by-month totals in 2025 so far are slightly above 2024 and similar to 2023, which was a 30-year high.
Key figures at a glance (England & Wales, August 2025)
Total insolvencies: 2,048 (+6% YoY, −2% MoM)
By type:
- Creditors’ Voluntary Liquidations (CVLs): 1,600 (~78% of all cases; similar to July; +5% YoY)
- Compulsory liquidations: 311 (−9% MoM; +11% YoY)
- Administrations: 121 (−17% MoM; +6% YoY)
- Company Voluntary Arrangements (CVAs): 16 (+33% MoM; −20% YoY)
- Receiverships: 0
12-month insolvency rate: 52.6 per 10,000 companies (1 in 190) down from 55.5 a year earlier and far below the 2008–09 peak (113.1).
Quick Table
| Measure | Aug 2024 | Jul 2025 | Aug 2025 | MoM | YoY |
|---|---|---|---|---|---|
| Total insolvencies | 1,933 | 2,083 | 2,048 | −2% | +6% |
| CVLs | 1,520 | 1,584 | 1,600 | +1% | +5% |
| Compulsory liquidations | 279 | 342 | 311 | −9% | +11% |
| Administrations | 114 | 145 | 121 | −17% | +6% |
| CVAs | 20 | 12 | 16 | +33% | −20% |
Methodology note: Compulsory liquidations, CVLs and administrations are seasonally adjusted in this release; CVAs are not (low volumes). Figures are provisional and may be revised.
Business Helpline commentary, what this means for directors
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“High but steady” baseline: The August dip (−2% month-on-month) doesn’t change the bigger picture: 2025 remains elevated versus pre-pandemic years, with CVLs dominating (~78%).
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Creditor pressure is persistent: Compulsory liquidations fell on the month but remain above 2024 levels, signalling continued enforcement activity (including HMRC).
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Options shrink when you wait: Directors who take early, regulated advice can often avoid missteps (e.g., wrongful trading risks, problematic strike-offs) and keep more restructuring/closure choices open.
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Personal risk management matters: Accurate records, careful handling of preferences and transactions, and the right formal route (often CVL for insolvent closures) protect directors.
Sector picture (12 months to July 2025)
(Industry data runs one month behind and excludes dormant/non-trading companies.)
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Largest volumes by SIC section: Construction (3,973); Wholesale & retail (3,673); Accommodation & food (3,371); Admin & support (2,405); Manufacturing (1,959); Professional, scientific & technical (1,941).
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Across the six largest sectors (≈73% of all recorded cases), insolvency counts over the latest 12 months were similar to or lower than the previous year (changes ranged from –12% to –1%).
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Interpretation: These are counts, not risk rates, they partly track how many companies exist in each sector.
Nations & regions snapshot
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Scotland: 95 company insolvencies in August 2025 (−7% YoY).
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Northern Ireland: 12 (+9% YoY).
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North West context: Our helpline data shows sustained enquiry levels across Greater Manchester and Lancashire. Directors cite HMRC arrears, energy and input costs, and tight lending conditions as key pressures.
Practical next steps for directors
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Check solvency now – cash-flow test and balance-sheet test.
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Engage creditors early – especially HMRC (consider Time to Pay where viable).
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Avoid risky shortcuts – strike-off is not a solution where debts exist.
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Document decisions – board minutes, cash-flow forecasts, creditor communications.
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Get regulated advice – a licensed Insolvency Practitioner can set out options clearly (CVL, CVA, administration, or rescue pathways).
Free, confidential advice 24/7: 0800 088 2142
