August insolvency statistics

Francesca Geddes, Solicitor

Whilst company insolvencies in August are slightly lower than those in July, they are 6% higher than August 2024 which appears to be consistent throughout the first eight months of 2025. Businesses continue to be placed under financial pressure despite cutting costs where possible.

Company insolvencies in August 2025 consisted of 311 compulsory liquidations, 1,600 creditors’ voluntary liquidations (CVLs), 121 administrations and 16 company voluntary arrangements (CVAs).

11,248 individuals became insolvent which was 16% higher than August 2024. Notably, Debt Relief Orders (DROs) saw an increase of 88% at a staggering 4,239.

Dermot Preston, restructuring expert comments:

“There is a lot of uncertainty and nervousness in the market at the moment with a number of important business decisions being postponed or even cancelled pending the next budget which isn’t due until the end of November.

The retail sector is suffering badly but so are a number of other sectors including manufacturing and leisure. Inflation remains stubbornly high, and the forecast is that interest rates will not fall further until early next year at the earliest. It is likely that formal insolvencies will remain at a significant level, certainly over the next few months.”

At Kuits, we understand that the current climate is putting businesses and their management teams under pressure to simply generate enough profit to keep their business afloat and their staff employed. Timing is key. Recognising that your business is under financial stress early may open a range of restructuring opportunities.

Contributor, Dermot Preston, Senior Lawyer