Latest monthly insolvency statistics for January 2025 show that there were 1,971 registered UK company insolvencies, 6% higher than December 2024 and 11% higher than January 2024. Figures are down from the record 30 year high in 2023.
Daniel Staunton, senior associate in the restructuring & insolvency team at Kingsley Napley LLP, said: “January 2025 saw: 269 compulsory liquidations, 1,546 CVLs, 142 administrations and 14 CVAs. CVLs and administration were both higher than last month but compulsory liquidations were lower. CVLs accounted for 78% of all company insolvencies.
“The stats this month are consistent with the figures published throughout 2024 and show a steady increase in the number of insolvencies but with no sharp decline or increase in any one insolvency process. Compulsory liquidations were down but only by 5% from the previous month, for example.
“The Bank of England acted recently to cut interest rates (again) to curb rising inflation and there remains a smorgasbord of risk factors that could see tip the scales to result in sharp spikes in the total number of insolvencies in the coming months if these quantitative easing steps do not kick in as soon as the government hopes. It comes as no surprise that the worst hit sectors continue to be construction, retail and food and beverage companies which trend I expect to continue.”
He concluded: “As always, the message to directors of struggling businesses is to take early advice in order to maximise the time available to find a solution to save their business, whether this be an informal workout, a moratorium in order to protect the company for a period of time in order to allow refinancing, a Company Voluntary Arrangement or a Restructuring Plan amongst other possible solutions.”
