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Insolvency in retreat: the numbers behind England and Wales’ surprise drop

Episode #4118 September 2025

Company insolvencies in England and Wales have taken an unexpected dip. In June 2025, the Insolvency Service recorded 2,043 cases, 8% lower than May and 16% lower than the same month last year. For a country still grappling with rising costs and fragile supply chains, the fall is striking.

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The number of company insolvencies fell in June 2025, down 8% from the previous month and 16% lower than June 2024. Most cases were creditors’ voluntary liquidations, where directors chose to wind up the company with creditor approval. Other routes included compulsory liquidations ordered by courts, administrations led by insolvency practitioners, and company voluntary arrangements that let firms trade while repaying debts. These processes determine how creditors recover money, with secured creditors ranking ahead of unsecured ones.

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