UK company insolvencies by type: the 2025 breakdown
Most company insolvencies in England and Wales are creditors' voluntary liquidations, where directors choose to wind up an insolvent company. CVLs made up about 77% of all company insolvencies in 2025, at 18,525 cases. Compulsory liquidations, where a court winds the company up on a creditor's petition, reached their highest annual number since 2012. Administrations and company voluntary arrangements are far smaller and both fell on the year. Overall, about one in every 190 companies on the register entered insolvency in 2025.
The four procedures
| Procedure | What it is | 2025 | Dec 2025 |
|---|---|---|---|
| Creditors’ voluntary liquidation (CVL) | Directors choose to wind up an insolvent company | About 77% (18,525 in 2025) | 1,305 |
| Compulsory liquidation | A court winds the company up, usually on a creditor’s petition | Highest annual number since 2012 | 245 |
| Administration | An administrator tries to rescue the company or get a better result for creditors | Down about 6% on 2024 | 106 |
| Company voluntary arrangement (CVA) | A binding deal to repay creditors over time and keep trading | Down about 8% on 2024 | 15 |
Figures from the Insolvency Service Company Insolvency Statistics, 2025 annual and December 2025 monthly. England and Wales.
What the split tells you
The dominance of creditors' voluntary liquidations means most company failures are directors acting first, choosing an orderly wind-up rather than waiting for a creditor to force the issue through the courts. The notable shift in 2025 was the rise in compulsory liquidations to their highest in over a decade, which usually reflects more creditors, including HMRC, pursuing winding-up petitions. Administrations and CVAs, the rescue-oriented procedures, remain a small share and both fell, so the picture is weighted heavily towards closure rather than rescue. The insolvency rate of about one in 190 companies was unchanged on 2024.
How this is measured
All figures are from the Insolvency Service's official Company Insolvency Statistics for England and Wales, covering the 2025 calendar year and the December 2025 month. Each company insolvency is counted once under its procedure. The rate of one in 190 is expressed against the total number of companies on the Companies House effective register. This page reports the published statistics and is general information, not legal or financial advice. Last reviewed June 2026.