Azets responds to July 2025 company insolvency statistics
Company insolvencies were 1.4% higher in July 2025 than in June 2025, and 0.1% higher than in July 2024.
Costs and cash pressures continue to drive corporate insolvencies. Businesses have faced rising expenses for a number of years, driven by a mixture of economic and geopolitical issues. This, alongside ongoing problems with managing Covid debts, has led to an increasing number of directors entering an insolvency process in an attempt to resolve their finances and pay their creditors.
While the monthly and yearly increases in corporate insolvencies are small, the figures for July 2025 remain well above pre-pandemic levels and are the highest we’ve seen for the month of July in more than five years. Having said that, the monthly and yearly increase shown in the figures published today is largely driven by a rise in the number of firms entering an Administration, which is potentially positive news as it suggests that there are more businesses facing the prospect of a sale out of Administration – the outcome the profession will always seek to achieve wherever possible.
Looking at the figures more broadly, Liquidations continue to make up the overwhelming majority of insolvency processes as directors find themselves facing no other alternative to closing their businesses and creditors resort to the courts as a result of a need to keep their own finances on track and settle their own debts, with HMRC remaining the largest instigator of winding-up petitions as it attempts to recapture money for the Treasury.
We’re here to help
There remain a number of options open to distressed firms to address their financial issues – but the sooner they seek advice about their situation, the greater chance they have of the full range of solutions and processes being open to them, and of turning their situation around. Talking about the problems your business has is one of the hardest things to do but speaking to an adviser when the signs of financial distress first emerge is the most sensible and most impactful action you can take – for you and for your business.
Get in touch with a member of our specialist team today to discuss your position.
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