Company Insolvency statistics January 2026: what the latest figures mean for company directors

Compulsory liquidation usually reflects creditor led action and can move quickly once a petition is in play. Even when the overall year on year trend is down, any increase month on month is a reminder that creditors can and do escalate, particularly where:

• Payment promises have been repeatedly missed

• HMRC enforcement pressure rises

• Suppliers stop supplying without payment

• A creditor believes the company is not engaging

If you are worried a creditor may take action, speaking to a licensed professional early can help you understand your options before choices narrow.

There were 151 administrations in January 2026. That is:

• 41% higher than December 2025

• 14% higher than January 2025

Administration is often associated with an attempt to protect value. It can be used to:

• Rescue the company (where viable)

• Achieve a better outcome for creditors than an immediate wind up

• Facilitate an orderly sale of the business or assets

It is not automatically “good news”, because it still reflects serious distress, but it can indicate more businesses are trying to manage the situation in a structured way rather than allowing things to spiral into creditor led action.

If your business has a viable core but is being overwhelmed by arrears, creditor pressure, or a sudden downturn, early advice can help you assess whether rescue routes exist, or whether closure is the safer path.

There were 13 CVAs in January 2026, which is:

• 13% lower than December 2025

• 7% lower than January 2025

The release notes that CVA volumes remain low compared to historic levels.

Industry breakdowns in the release are presented with a lag and the commentary highlights the sectors with the highest insolvency volumes in 2025 in England and Wales (excluding cases where industry is unknown). The six sectors with the highest volumes were:

• Construction

• Wholesale and retail, including motor repairs

• Accommodation and food service activities

• Administrative and support service activities

• Professional, scientific and technical activities

• Manufacturing

Important director warning about sector data

High volume does not automatically mean highest risk. Some sectors contain far more companies than others, which naturally leads to more insolvencies in raw numbers.

The figures are most useful as an indicator of where pressure is concentrated, not as a prediction that every business in that sector is in danger.

If you are reading this because you recognise the pressure, you are not alone. Insolvency statistics are a snapshot of formal processes, but behind every number is usually a period of strain that looks like:

• Juggling HMRC, suppliers, rent, and payroll

• Reacting to creditor emails and calls daily

• Losing sleep because you cannot see a clear route forward

• Feeling like you are one surprise away from everything tipping

The most important step is to create clarity before decisions get made for you.

Step 1: Get a true picture of cash flow

Directors often rely on bank balance and instinct when under stress. A simple 13 week rolling cash flow forecast can show:

• Whether the business is drifting or falling

• When pressure points will hit

• What can be stabilised quickly

Step 2: Identify which creditor is most likely to escalate

Not every creditor behaves the same. In practice, escalation risk rises where you have:

• Broken payment promises

• Large arrears with no plan

• Non communication

• Evidence of inability to pay as debts fall due

Step 3: Work out whether the business is viable

A viable business with short term arrears is a different scenario to a business where the underlying model no longer works. Early advice helps you decide between:

• Recovery options (time to pay discussions, restructure, asset sale, refinance where appropriate)

• Formal rescue routes (where suitable)

• Orderly closure options (like CVL) to prevent matters escalating

Step 4: Take advice early to protect options

The longer you leave it, the more likely it becomes that:

• Choices narrow

• Costs rise

• Stress increases

• Outcomes become less controlled

Seeking advice is not “giving up”. It is often the most responsible step a director can take.

The Company Insolvency statistics January 2026 show that:

• Insolvencies are slightly higher than the previous month

• They are materially lower than the same month last year

• CVLs still make up the majority

• Administration has risen sharply, suggesting more companies are trying to manage distress through structured routes rather than letting it end in uncontrolled escalation

If you are worried about creditor pressure, HMRC arrears, or simply the constant feeling of being behind, a confidential conversation can help you understand what is realistic, what is not, and what your next step should be.

Business Helpline offers free, confidential advice for UK company directors.

Call our free helpline: 0800 088 2142