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Sunday, 1 November 2026 Business · World · Analysis
THE BUSINESS TIME
ARGONAUTS MEDIA GROUP®
The Business TimeBusiness
Business

One firm in 200 goes bust: construction, retail and hospitality most at risk

1,946 companies became insolvent in England and Wales in August. The overall number of insolvencies is falling slightly, but administrations are rising sharply.

“Closed” sign in a shop window

Update 21.10.2026, 08:28: According to the latest Insolvency Service data, 1,882 companies became insolvent in England and Wales in September 2026 – 4% fewer than in August (August’s figure was revised to 1,953) and 5% fewer than a year earlier. There were 1,420 creditors’ voluntary liquidations (CVLs), 341 compulsory liquidations (more than in August and a year earlier), 102 administrations and 19 company voluntary arrangements (CVAs).

According to the Insolvency Service, 1,946 company insolvencies were recorded in England and Wales in August 2026, 1% more than in July and 3% fewer than a year earlier. Over 12 months roughly one company in 200 became insolvent (50.1 per 10,000), fewer than a year earlier (52.5).

Most were creditors’ voluntary liquidations (1,431). There were 182 administrations, 60% more than a year earlier, and 314 compulsory liquidations, up 5%.

The most insolvencies over the year were in construction (3,866, 17%), wholesale and retail trade and motor vehicle repair (3,395, 15%) and accommodation and food services (3,201, 14%).

Editorial comment

These are exactly the sectors where most Polish businesses in the UK operate. The statistics cut both ways: your own firm could go under, or a customer who doesn’t pay you could. In construction, the collapse of a main contractor often drags subcontractors down with it. The rise in administrations shows larger firms are getting into trouble too.

What to do

  • Check business partners before a big job: accounts at Companies House, late filings, changes of directors.
  • Shorten payment terms and take deposits on larger jobs, especially in construction.
  • Watch your cash flow: have a plan for three months ahead, not just the current one.
  • If your firm is in difficulty, contact a licensed insolvency practitioner early. The earlier you do, the more rescue options there are.
  • When a business partner goes bust, file your claim with the office-holder as soon as possible.

What do you think?

Do you feel this threat in your business? What are you already doing, and what worries you? Tell us in the comments below the article. We will cover the most interesting views in future editions.

Sources

Original editorial content by The Business Time, based on the sources listed. Illustrative photo.

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