Aug 12

2026

Company failures are falling while personal insolvencies climb: reading the mid-year figures

The June 2026 insolvency figures show a clear split. In England and Wales, registered company insolvencies fell to 1,845, 10% below June 2025, while individual insolvencies rose to 11,871, up 16% year on year. Northern Ireland showed the same direction, with 18 company insolvencies, down 28%, and 189 individual insolvencies, up 13%.

What the corporate numbers show

In the 12 months to 30 June 2026, one in 198 companies in England and Wales entered insolvency, equivalent to 50.5 per 10,000 companies, down from 52.4 per 10,000 a year earlier. Creditors’ voluntary liquidations remained dominant, with 1,364 CVLs accounting for 74% of June cases.

There were 191 administrations, up 45% from May and 80% from June 2025. However, approximately 60 connected real-estate companies entered administration during June, significantly affecting that figure. Eight moratoriums and two restructuring plans were also registered.

Construction recorded the highest number of insolvencies over the 12 months to June, followed by wholesale and retail and accommodation and food services. These pressures sit alongside construction cost inflation squeeze contractor margins and the way a late payment problem turns into a cash flow problem.

Mid-year insolvency comparison

Ireland remains comparatively stable

The PwC Insolvency Barometer for the first half of 2026 recorded 444 corporate insolvencies in Ireland, broadly unchanged from 436 in H1 2025. PwC estimates an annual insolvency rate of about 27 per 10,000 businesses, below its 21-year average of 49.

Retail insolvencies increased 35% to 109, while hospitality fell 26% to 60. Court-appointed liquidations rose 23% to 70, not 69%, and 24 followed Revenue Commissioner petitions.

Businesses operating across both jurisdictions should coordinate cross-border accounting and tax support and monitor RCT cash flow for contractors working in Ireland.

Why personal insolvency matters to business owners

The 11,871 individual insolvencies in England and Wales comprised 7,318 IVAs, 3,879 debt relief orders and 674 bankruptcies. Over the 12 months to June, one in 369 adults entered insolvency, compared with one in 413 a year earlier.

Breathing Space registrations fell 41% to 4,495, but the Insolvency Service attributes much of the reduction to StepChange changing its suitability criteria in November 2025 rather than necessarily to lower financial pressure.

For owner-managed businesses, personal guarantees and director loan accounts can connect household and business finances. Review director loans after April 2026 and the monthly KPIs that flag trouble early.

A rolling cash forecast, current management accounts and a realistic funding review provide a stronger basis for decisions. Our guide to SME lending and growth funding covers available considerations.

Where pressure is building, the recovery and restructuring team can assess options. Forensic accounting and investigations may also be relevant where transactions, creditor conduct or missing funds are disputed.

Frequently asked questions

Are company insolvencies going up or down in 2026?

In England and Wales, June company insolvencies were 10% lower than a year earlier, while the 12-month insolvency rate also declined.

What is the most common company insolvency procedure?

Creditors’ voluntary liquidation. CVLs represented 74% of June cases. Our guide to what happens to creditors during company insolvency explains the process.

Does personal bankruptcy stop me being a company director?

An undischarged bankrupt cannot act as a company director or take part in company management without court permission.

When should I seek advice?

Seek advice when forecasts show that liabilities may not be paid as they fall due. Speaking to an insolvency accountant early can preserve more options.

Our SME business advisory team can review the financial position. Speak to our chartered accountants in Northern Ireland, Ireland and the UK for a confidential discussion.