Company Insolvency Statistics July 2026
The latest company insolvency statistics for July 2026 show that 1,931 companies entered insolvency in England and Wales, a 5% increase on June 2026, but 5% lower than July 2025.
This indicates a mixed picture: short-term volatility, but a slightly improving year-on-year trend. However, the continued dominance of Creditors’ Voluntary Liquidations (CVLs) shows that financial pressure on UK businesses remains significant.
Company Insolvency Statistics July 2026 - Key Figures
According to the Insolvency Service official release:
| Insolvency procedure | July 2026 | Change vs June | Change vs July 2025 |
|---|---|---|---|
| CVLs | 1,497 | +9% | -3% |
| Compulsory liquidations | 288 | +4% | -11% |
| Administrations | 124 | -33% | -19% |
| CVAs | 22 | +57% | +83% |
| Total | 1,931 | +5% | -5% |
CVLs accounted for around 78% of all insolvencies, continuing their clear dominance.
CVLs Remain the Main Route into Insolvency
Compulsory liquidations increased slightly to 288, but remain 11% lower than July 2025. These typically follow a winding-up petition and indicate creditor-led action via the courts.
Administrations fell sharply to 124 (-33% month-on-month), although this follows an unusually high June caused by several large real estate group insolvencies.
On a longer view, administration levels remain elevated compared with 2025, reflecting continued restructuring activity across stressed sectors.
Compulsory Liquidations and Administrations
There were 285 compulsory liquidations in May 2026, down 26% from April and 17% compared with May 2025.
A compulsory liquidation normally follows a winding-up petition presented by a creditor. If the court makes a winding-up order, the company is placed into liquidation and control passes away from its directors.
The reduction in May is welcome, particularly after compulsory liquidation numbers reached their highest annual level since 2012 during 2025. Nevertheless, a single month’s decline does not necessarily indicate that creditor enforcement pressure has disappeared.
Directors who receive a statutory demand, winding-up petition or other formal recovery action should seek advice immediately. The available options can become significantly more limited once a winding-up petition has been advertised or a winding-up order has been made.
Are Insolvencies Rising or Falling?
While July saw a monthly increase, broader trends are more stable:
- Insolvencies are 5% lower than July 2025
- 2026 monthly averages are 6% below the previous three-year average
- The rolling insolvency rate has fallen to 50.3 per 10,000 companies (around 1 in 199 businesses)
(Source: Insolvency Service statistical tables)
This suggests insolvency levels remain high, but are not accelerating overall.
Industry Breakdown
The sectors with the highest insolvency levels remain:
- Construction
- Wholesale & retail
- Accommodation & food services
- Administrative & support services
- Professional services
- Manufacturing
Construction alone accounts for 17% of all recorded insolvencies, reflecting continued pressure in traditionally high-risk sectors.
What This Means for Directors
The key takeaway is not a sudden rise in insolvency, but a sustained period of financial pressure across UK businesses.
Warning signs often appear well before insolvency, including:
- cash-flow problems
- HMRC arrears (PAYE, VAT, Corporation Tax)
- creditor pressure or statutory demands
- reliance on credit to fund operations
- difficulty meeting payroll or suppliers
At this stage, options may still include refinancing, HMRC Time to Pay arrangements, restructuring, CVAs, or administration.
Where recovery is not possible, a CVL may provide a controlled and orderly closure.
Business Helpline Commentary
The July increase in insolvencies is worth noting, particularly the rise in CVLs, but it should be viewed alongside the broader trend of slightly lower year-on-year insolvency levels and a falling insolvency rate.
The key point is that most insolvencies are still director-led CVLs, suggesting many businesses are recognising financial distress and acting before creditor enforcement begins.
For directors, timing remains critical. Early advice can often preserve more options and lead to better outcomes, whether that is rescue, restructuring, or orderly closure.
Worried About Your Company’s Financial Position?
If your company is struggling with debt, HMRC arrears, or creditor pressure, it is important to understand your options early.
Business Helpline provides free, confidential advice to directors of limited companies in financial difficulty.
Call 0800 088 2142 for immediate support.
Seeking advice does not commit you to any insolvency procedure.
