Company Insolvencies Rise 5% in July 2026 but Stay Below Last Year's Level
There were 1,931 company insolvencies in England and Wales in July 2026, up 5% on June but 5% lower than July 2025. Construction, retail and hospitality accounted for nearly half of cases.
By Entrepreneur Group · Published · Updated
There were 1,931 company insolvencies in England and Wales in July 2026, according to Insolvency Service figures published on 18 August. That was 5% more than in June (1,847) but 5% fewer than in July 2025 (2,031).
Over the 12 months to July 2026, 50.3 in every 10,000 companies became insolvent, about one in 199. That is lower than the 52.5 per 10,000 recorded a year earlier.
The breakdown
- Creditors' voluntary liquidations (CVLs): 1,497, up 9% on June and down 3% on a year earlier. CVLs, where directors choose to close an insolvent company, made up 78% of the total.
- Compulsory liquidations: 288, up 4% on June and down 11% on July 2025. These are usually started by a creditor through the courts.
- Administrations: 124, down 33% on June. The Insolvency Service says June's figure was inflated by around 60 connected real estate companies entering administration together.
- Company voluntary arrangements (CVAs): 22, up from 14 in June and 12 a year earlier. CVAs let a company agree a repayment plan with creditors and keep trading.
The figures are provisional and may be revised, and compulsory liquidation numbers for the latest month may be incomplete.
Which industries were hit hardest
Over the 12 months to July 2026, the industries with the most insolvencies were:
- construction: 3,841 (17% of cases where the industry was known);
- wholesale and retail, including motor vehicle repair: 3,422 (15%);
- accommodation and food services: 3,221 (14%);
- administrative and support services: 2,212 (10%).
Most large sectors had fewer insolvencies than a year before, with falls ranging from 2% in professional services to 8% in administrative and support services.
Scotland and Northern Ireland
Scotland recorded 83 company insolvencies in July, 28% fewer than a year earlier. Northern Ireland recorded 16, up 14%.
What directors should watch for
This section is editorial guidance, not legal or financial advice.
A fall compared with last year does not mean conditions are easy. Rising fuel and energy costs and a softening labour market put pressure on small businesses in the second half of 2026. If your company is struggling:
- Act early. Directors have legal duties to creditors once a company is, or is likely to become, insolvent. The sooner you take advice, the more options you usually have.
- Talk to a licensed insolvency practitioner. Many offer a free first conversation. Options such as a CVA or time to pay may let a viable business keep trading.
- Speak to creditors. HMRC, landlords and suppliers are often more flexible when contacted before payments are missed.
- Keep records up to date. Accurate management accounts help you and your advisers make decisions quickly.
Frequently asked questions
How many companies went insolvent in July 2026?
There were 1,931 company insolvencies in England and Wales in July 2026, up 5% on June and down 5% on July 2025, according to the Insolvency Service.
Which industry has the most company insolvencies in the UK?
Construction had the most company insolvencies in the 12 months to July 2026, with 3,841 cases, 17% of those where the industry was known.
What is a creditors' voluntary liquidation?
A CVL is when the directors of an insolvent company decide to close it, and a licensed insolvency practitioner sells its assets to pay creditors. CVLs made up 78% of company insolvencies in July 2026.
Sources
- The Insolvency Service: Commentary, Company insolvency statistics July 2026 (18 August 2026) (reviewed 27 October 2026)
- Accountancy Today: Company insolvencies rise 5% in July to 1,931 (reviewed 27 October 2026)