Insolvency Trends 2025

Dermot Preston, Senior Lawyer

The Government has recently released insolvency stats for December 2025. Below, we review the trends which have appeared over the last year.

Receiverships are almost extinct

Receiverships are now very rare. There were zero appointments in December 2025 and only two across the whole year.

This highlights a shift toward the statutory processes (i.e. compulsory liquidation and administration) which is more orderly and regulated.

Moratoriums and restructuring plans are slowly increasing

In 2025, there was 8 moratoriums and 22 restructuring plans which shows slow growth in flexible rescue mechanisms. In December 2025, no moratoriums and one restructuring plan was registered which shows their slow growth.

Insolvency numbers remain steady

The 2025 insolvency rate was 52.5 per 10,000 companies which is unchanged from 2024. Although these numbers are still relatively high, the volumes are still far below the 2008/09 recession peak of 113.1 per 10,000. Today’s rates reflect a larger business population rather than a proportionate rise in risk of failure.

CVA numbers remain low

2025 shows that Company Voluntary Arrangements continue on their long-term decline:

• In December 2025, CVA activity fell 17% compared to November.
• The number of CVAs in 2025 were less than 2024 but it was still higher than the 2022 low point recorded.
• The number of CVAs in 2025 remained 47% lower than the 2015 to 2019 annual average.

Administration shows mixed signals

• In December 2025, Administration activity fell sharply by 21% compared to November.
• Across the year, administrations decreased 8% compared with 2024.
• 2025 volumes remain well above the 18-year low last seen during the 2021 pandemic downturn, confirming that financial pressures are still circulating through the economy.

What this means for businesses

These figures show a stabilising but still pressured environment. Key takeaways for businesses include:

• It suggests that more businesses may be defaulting into liquidation routes.
• Traditional insolvency routes dominate, but newer restructuring tools are gaining traction.
• Overall insolvency risk remains elevated in absolute numbers but proportionally moderate.
• Early intervention remains critical as once‑rare procedures continue to evolve in relevance.

Waiting too long to act when a business is facing tight margins or fluctuating demand reduces the number of viable rescue options and therefore it is essential that businesses conduct: (1) early financial forecasting, (2) proactive creditor engagement and (3) timely restructuring advice.

At Kuits, our insolvency team regularly advise businesses which face financial difficulties. If you are seeking advice in this regard, please do not hesitate to contact our team on 0161 832 3434 to discuss how best we can support you.