February 2025 Insolvency Statistics

Corporate insolvencies increased by almost 3% in February 2025 compared to January, taking the overall figure above 2,000 for the month, although this is still slightly lower than this same period in 2024.

Tom Russell, Vice President of R3, noted in his response to the most recent statistics that the rise was primarily driven by an increase in Compulsory Liquidations. I haven’t drilled down into the specific ratios on this, but I am not surprised by it.

There are certainly far more Winding Up Petitions already issued in the cases that are arriving here than in past years, typically instigated by the tougher line that HM Revenue & Customs seem to be taking on historical debts. However there has also been a marked increase in similar action being taken by utilities companies. These latter cases have proven a little more difficult to negotiate away from, simply because of the more commercial nature of the actual procedure once a profit making enterprise instructs a firm of Solicitors. The pragmatic and realistic approach to remedial CVL action after the issuing of a WUP that HMRC often take is sometimes lacking when the Creditor and it’s representatives are profit oriented.

As ever, the key here is swift and pre-emptive action. Rarely does a WUP land out of the blue. Early counsel and planning can make all the difference in these scenarios. And where a Winding up Petition has actually been issued we have the experience and network of professionals that can, more often than not, mediate between Debtor and Creditor and ensure a more productive and realistic outcome.

Elsewhere in the Restructuring media, I came across a quote in the Financial Times this week stating that 2025 was set to be a ‘Watershed’ year for corporate insolvency. We now seem to be battling on several fronts; economically, societally, politically and increasingly geo-politically. Factor in the increases in National Insurance and National Minimum Wage in April and it is hard to disagree with the assertion.

We continue to work with companies across a wide range of industries but both hospitality and construction continue to be predominating sectors in our recent work.

Link to the statistics here;

https://www.gov.uk/government/statistics/company-insolvencies-february-2025