The number of registered company insolvencies in England and Wales jumped by 15% annually in May, new figures from the Insolvency Service have shown.

Latest figures revealed there were 2,238 company insolvencies during May, up from 1,946 in the same month last year, which was also an 8% month-to-month jump when compared to April (2,074).

Company insolvencies in May consisted of 354 compulsory liquidations, 1,734 creditors’ voluntary liquidations (CVLs), 136 administrations and 14 company voluntary arrangements (CVAs).

Monthly company insolvency numbers through the first five months of 2025 were slightly higher than in 2024 and at a similar level to 2023, which saw a 30-year high annual number of insolvencies.

Partner in the restructuring and recovery team at professional services firm S&W, Mark Ford, commented that many businesses are facing a “challenging operating environment”.

“This is reflected in the latest data published today by the Insolvency Service,” he added. “The impact of sluggish economic growth, high borrowing costs, low consumer confidence and high inflation in recent years has eroded cash reserves for businesses and left some in a perilous position.

“Given the challenging economic backdrop, businesses need to urgently wake up to the risks that could affect their operations and plan accordingly. Those that take a realistic look at the pressures facing their businesses and focus on building cash reserves will maximise their chances of survival and saving jobs.”

HW Fisher Business Solutions director, Simon Michaels, added: “Poor cash flow management remains the silent killer of UK businesses. Even profitable companies can fail rapidly when earnings and outgoings don't align and with one in two businesses having overdue and late payments owed to them, this problem is only getting worse.

“Businesses must seek help early. There are a range of solutions available, from cash flow forecasting and accounts receivable management to expense monitoring, tax planning and strategic advisory services, that can prevent problems before they occur. But these are only effective if action is taken before reaching a crisis point.”

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