Company Insolvencies Fell 5% in September 2026, but Compulsory Liquidations Rose 25%
There were 1,882 company insolvencies in England and Wales in September 2026, 5% fewer than a year earlier. Compulsory liquidations, usually started by creditors, rose 25% on the year.
By Entrepreneur Group · Published · Updated
There were 1,882 company insolvencies in England and Wales in September 2026, according to Insolvency Service figures published on 20 October. That was 4% fewer than in August and 5% fewer than in September 2025. Over the past 12 months, about one in 200 companies became insolvent, a rate of 49.9 per 10,000 companies, down from 52.8 a year earlier.
The total was also lower than August, when the previous release first recorded 1,946 insolvencies, 3% fewer than in August 2025. So the overall number has been edging down.
The overall fall hides a sharp rise in one type of insolvency. Compulsory liquidations, which are usually started when a creditor petitions the court, rose to 341, 25% more than a year earlier.
The breakdown
All figures are seasonally adjusted and provisional:
- Creditors' voluntary liquidations (CVLs): 1,420, down 9% on the year. These are started by a company's own directors and remain the most common type.
- Compulsory liquidations: 341, up 6% on August and 25% on September 2025.
- Administrations: 102, down 20% on the year. The Insolvency Service notes administration numbers have been volatile in recent months.
- Company voluntary arrangements (CVAs): 19, up 12% on the year.
In Scotland there were 117 company insolvencies, 14% more than a year earlier. In Northern Ireland there were 45, up 61%, although small numbers can swing sharply from month to month.
Which industries are most affected
Over the 12 months to September 2026, where the industry was recorded, the most insolvencies in England and Wales were in:
- Construction: 3,873 (17%)
- Wholesale and retail trade, including motor repair: 3,364 (15%)
- Accommodation and food services: 3,208 (14%)
- Administrative and support services: 2,202 (10%)
- Professional, scientific and technical activities: 1,897 (8%)
- Manufacturing: 1,827 (8%)
What the rise in compulsory liquidations means
Compulsory liquidations are typically pursued by creditors, often HMRC or suppliers, to recover unpaid debts. A 25% annual rise suggests creditors are taking firmer action. That matters to founders in two ways: your customers may be pursued by their creditors, and you may need to act as a creditor yourself.
This section is editorial guidance, not legal or financial advice.
- Watch your debtors. Construction, retail and hospitality customers carry higher insolvency risk. Review credit limits and payment terms for customers in those sectors.
- Chase early. Unpaid invoices become harder to recover once a customer is insolvent. Agree payment plans before debts age.
- Look after your own tax position. If you are struggling to pay HMRC, contact it early rather than waiting for enforcement.
- Get advice early. If your own business is under pressure, a licensed insolvency practitioner or accountant can explain options while you still have choices.
Frequently asked questions
How many companies became insolvent in September 2026?
There were 1,882 company insolvencies in England and Wales in September 2026, 5% fewer than in September 2025, according to the Insolvency Service.
What is the company insolvency rate in England and Wales?
In the 12 months to September 2026, 49.9 in every 10,000 companies became insolvent, about one in 200. That was down from 52.8 per 10,000 a year earlier.
Which industry has the most insolvencies?
Construction had the most company insolvencies in the 12 months to September 2026, with 3,873 cases, 17% of those where the industry was recorded.
Sources
- The Insolvency Service: Commentary, Company insolvency statistics September 2026 (20 October 2026) (reviewed 27 October 2026)
- The Insolvency Service: Commentary, Company insolvency statistics August 2026 (reviewed 27 October 2026)