UK company insolvencies by type: the 2025 breakdown
There were 23,938 company insolvencies in England and Wales in 2025, and most were creditors' voluntary liquidations, where directors choose to wind up an insolvent company. CVLs made up 77% of the total, 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. Insolvency Service, gov.uk
Data as of: 2025 annual figures, published 20 January 2026 · Source: Insolvency Service, Company Insolvency Statistics December 2025 · For the latest month, see the UK company insolvency tracker.
The four procedures
| Procedure | 2025 cases | Share of 2025 | Change on 2024 | What it is |
|---|---|---|---|---|
| Creditors voluntary liquidation (CVL) | 18,525 | 77% | Down 2% | Directors choose to wind up an insolvent company |
| Compulsory liquidation | 3,730 | 16% | Up 15% | A court winds the company up, usually on a creditor’s petition |
| Administration | 1,495 | 6% | Down 6% | An administrator tries to rescue the company or get a better result for creditors |
| Company voluntary arrangement (CVA) | 186 | 1% | Down 8% | A binding deal to repay creditors over time and keep trading |
Copy this data as text
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 one in 190 companies (52.5 per 10,000) was the same as in 2024. Shares for a single recent month can differ from the annual split; the July 2026 figures are on the UK company insolvency tracker.
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. 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.
Copy this answer for AI / citation
Related data and guidance
Not sure which route fits?
Tell us briefly what’s happening and we’ll review it, free and confidential, and reply with what we think the right next step is.
Send my situation, free and confidential
Free, confidential and no obligation. We are an independent information service. Getting in touch does not appoint an insolvency practitioner or create a professional engagement. We review your situation and reply with what we think the right next step is. This is general information, not regulated advice.