March 2025 had 1,992 registered company insolvencies in England and Wales, which was 9% more than the same month the year before (1,826 in March 2024) but 2% fewer than February 2025 (2,032). Though they have remained high in comparison to historical levels, company insolvencies over the last 12 months have been marginally lower than in 2023, which saw a 30-year high annual total.In March 2025, there were 295 compulsory liquidations, 1,543 creditors' voluntary liquidations (CVLs), 137 administrations, and 17 company voluntary arrangements (CVAs) among the insolvencies of companies. Compulsory liquidations were greater than March 2024 and the monthly average for 2024, although they were 24% fewer than the 10-year high recorded in February 2025. In March 2025, the number of CVLs was comparable to the monthly average for 2024 and February 2025. Compared to February 2025, there were more administrations and CVAs.From April 1, 2024, to March 31, 2025, one in 188 businesses listed in the Companies House effective register (or 53.1 out of 10,000 businesses) became insolvent. Compared to the 55.8 per 10,000 businesses that went bankrupt in the 12 months ended March 31, 2024, this represented a decline. Insolvency rates are calculated as a percentage of the total number of businesses on the effective register on a 12-month rolling basis. Longer-term patterns are displayed by the 12-month rolling rates, which also lessen the volatility of estimates based on individual months.The insolvency rate has risen from the 2020 and 2021 lows, but it is still much below the 2008–09 recession peak of 113.1 per 10,000 businesses. This is due to the fact that throughout this time, the number of businesses on the effective register has more than doubled.
CVLs
In March 2025, CVLs accounted for 77% of all company insolvencies. The number of CVLs increased by 1% from February 2025 and was 8% higher compared to the same month last year (March 2024).In 2024, the annual number of CVLs declined for the first time since 2020. This came after three years of increases, peaking in 2023 at the highest annual total since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007.
Compulsory liquidations
Compulsory liquidations have increased in recent months. The number in March 2025 was 24% lower than the 10-year high seen in February 2025, but 5% higher than in March 2024 and 9% higher than the 2024 monthly average.In 2024, compulsory liquidations were at the highest levels since 2014, having increased by 14% compared to 2023 volumes. This continued an increase from record low levels seen in 2020 and 2021, while restrictions applied to the use of statutory demands and certain winding-up petitions (leading to compulsory liquidations).
Administrations
The number of administrations in March 2025 was 17% higher than in February 2025 and 30% higher than in March 2024.In 2024, the number of administrations increased by 2% from 2023 and was slightly higher than annual totals seen between 2015 and 2019. Numbers of administrations have continued to increase since 2022 from an 18-year annual low seen during the COVID-19 pandemic in 2021.
CVAs
The number of CVAs in March 2025 was 2.4 times as many as in February 2025 and 89% higher than in March 2024. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.
In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022, which saw the lowest ever annual total in the time series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the 2015 to 2019 annual average.
Receivership appointments
There were no receivership appointments in March 2025. Receivership appointments are now rare, with only three being registered in the past 12 months ending March 2025 (see Glossary for further information).
Insolvencies by Industry
The five industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in the 12 months to February 2025 were:Construction (4,046, 17% of cases with industry captured),Wholesale and retail trade; repair of motor vehicles and motorcycles (3,607, 15% of cases with industry captured),Accommodation and food service activities (3,405, 14% of cases with industry captured),Administrative and support service activities (2,367, 10% of cases with industry captured), andManufacturing (1,974, 8% of cases with industry captured).Analysts will be looking closely at staff heavy industries such as Leisure and hospitality for any indications of distress following the hikes in Employers NIC.
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