Mostly good news again in terms of corporate insolvencies as England and Wales recorded 1,845 closures in June. This marks a 10% decrease from June 2025, and the fourth month out of six so far that has seen a drop from 2025’s figures (2,048).
It also represents a decrease from May’s figures (albeit negligible) as four fewer businesses closed.
These insolvencies were made up of 1,364 creditors’ voluntary liquidations, 276 compulsory liquidations, 191 administrations and 14 company voluntary arrangements. Each of these decreased in volume from May’s figures apart from administrations, which climbed by 45%. This increase can be explained, however, by the administration of around 60 real estate companies that were all connected to one another.
Elsewhere, Northern Ireland also saw a drop from July 2025’s numbers at 18, while Scotland’s stayed roughly the same at 104.
Construction still the riskiest sector
While the majority of sectors have seen a decrease in insolvencies over the last 12 months, the top three riskiest industries still remain the same: construction, retail and hospitality.
The only sectors with increasing numbers of insolvencies have been real estate and health/social care.
“The tide has already turned”
Senior Client Manager at Forbes Burton, Ben Westoby suggests that the country could have already found its way out of the increasing number of insolvencies it was seeing month-to-month after the Covid-19 pandemic. “It would seem that the tide has already turned in respect to corporate insolvencies.
“Whether this slowdown is down to any particular change in the landscape is difficult to ascertain. It could simply be down to the fact that most of the companies that were already hanging by a thread have already fallen by the sword.
“Either way, UK SMEs should be at least warily optimistic about this news. The stats this year demonstrate that it’s becoming slightly more likely that businesses can avoid insolvency now”.
Is your business finding its bills trickier to pay?
While figures might be slowly dropping, insolvency numbers are still high. Closure remains a very real threat for many SMEs, making it advisable for business owners to take action as soon as issues start to occur. If you’ve started to notice that bills are more difficult to pay, cash flow reserves are becoming stretched, or that takings are down, make sure you give one of our friendly specialists a ring.
With a range of solutions aimed at making life easier for business owners, Forbes Burton can help you to successfully navigate your current difficulties. Get in touch for a free consultation today to see how we can help. Call us on 0808 280 6041, or email advice@forbesburton.com for your free consultation with no obligation.
