Company Insolvency Statistics July 2025
The latest company insolvency statistics July 2025 have been published by the Insolvency Service.
These figures highlight current pressures on UK businesses and offer important insights for company directors considering their options.
Headline Figures for England and Wales
In July 2025, there were 2,081 company insolvencies. This figure is almost identical to June 2025 (2,053) and July 2024 (2,078).
Numbers for the first seven months of 2025 remain slightly higher than late 2024, but still below the record highs of 2023.
The breakdown of insolvencies was as follows:
- 1,583 Creditors’ Voluntary Liquidations (CVLs) – 76% of all cases.
- 339 Compulsory Liquidations.
- 147 Administrations.
- 12 Company Voluntary Arrangements (CVAs).
- 0 Receivership appointments.
The insolvency rate was 1 in every 190 companies (52.5 per 10,000). This is lower than the rate of 56.6 per 10,000 recorded in July 2024.
Key Trends and What They Mean
CVLs
CVLs remain the most common form of insolvency, accounting for over three quarters of all cases.
While the volume has stabilised compared to 2023’s record highs, they are still the route chosen most often by directors deciding to voluntarily close a company due to debt.
Compulsory Liquidations
The number of compulsory liquidations in July 2025 was 11% higher than July 2024 and above the 2024 monthly average.
This shows creditors, including HMRC, are increasingly turning to legal action to recover debts.
Directors receiving a statutory demand or winding-up petition should seek urgent advice.
Administrations
Administrations increased by 24% compared with June 2025.
While the overall volume is modest, this suggests some directors are choosing to protect and restructure viable businesses rather than closing them down entirely.
CVAs
Only 12 CVAs were recorded in July 2025, which is 52% fewer than in July 2024.
This option remains rare, mainly due to the difficulty in securing creditor approval and the financial stability required to make the arrangement work.
Insolvency Rate in Context
The insolvency rate of 52.5 per 10,000 companies is lower than last year, reflecting growth in the number of companies on the register.
For perspective, this rate is far below the peak of 113.1 per 10,000 during the 2008-09 recession.
However, it is significantly higher than the very low levels of 2020–21 when government Covid-19 support kept many companies afloat.
Industry Breakdown
In the 12 months to June 2025, the sectors with the highest number of insolvencies were:
- Construction – 3,984 cases (17% of total).
- Wholesale and retail trade – 3,655 cases (16%).
- Accommodation and food service activities – 3,366 cases (14%).
- Administrative and support service activities – 2,433 cases (10%).
- Manufacturing – 1,953 cases (8%).
- Professional, scientific and technical – 1,946 cases (8%).
Directors in these industries remain under the greatest strain, with cashflow pressures, late payments, and rising costs being the most common causes.
Scotland and Northern Ireland Snapshot
In Scotland, there were 116 insolvencies in July 2025, a slight fall from the same month in 2024. These consisted of 68 CVLs, 43 compulsory liquidations, four administrations, and one CVA.
In Northern Ireland, there were 14 insolvencies in July 2025, a 30% reduction compared to July 2024. These included 10 CVLs, three CVAs, and one compulsory liquidation.
What This Means for Directors
The message from July 2025’s insolvency statistics is clear. While overall numbers have stabilised, creditor pressure is growing and certain industries remain highly exposed.
If your company is struggling with mounting debts, tax arrears, or cashflow difficulties, it is crucial not to wait until creditors take action.
Directors have more control if they seek advice early, whether that means exploring restructuring, administration, or a voluntary liquidation.
Need Help Understanding Your Options?
At Business Helpline, we provide free and confidential advice to company directors facing financial challenges.
If you are concerned about your company’s future, call our 24-hour helpline today on 0800 088 2142 to speak to an insolvency expert.
