PwC comments on August 2025 insolvency data

The Insolvency Service August 2025 corporate insolvency data shows that 2,032* companies failed in August which was a 2% reduction when compared to July but 6% higher compared to the same month last year. So far in 2025, 16,360 companies have ceased trading through insolvency compared with 16,223 for the same period in 2024.  

David Kelly, Head of Insolvency at PwC commented: 

“The month-on-month reduction in insolvency numbers is welcome news. However, August typically coincides with the holiday season, when many business owners may temporarily step back from day-to-day challenges and decision making. Looking ahead, September will be a pivotal month in assessing the true trajectory of business resilience. Despite the temporary reduction in insolvency rates, many companies continue to face mounting cost pressures, particularly in relation to employment costs which have been difficult to pass on to customers.

“Smaller, owner-managed businesses are increasingly bearing the brunt of current economic challenges. The fragile financial tightrope many of these firms have been walking is now proving too tricky to tread. Companies with annual turnovers below £1 million account for over 97% of all insolvencies, highlighting the disproportionate impact on the lower end of the market. 

“However, the strain is not limited to small enterprises. A growing number of larger businesses, particularly those operating with outdated business models and unsustainable financial structures, are also beginning to fail. In some cases, the Insolvency Service has had to intervene directly due to the absence of any remaining viable assets.

“Many retail businesses are holding out hope that the upcoming Black Friday in November will bring a much-needed surge in sales. For many, this seasonal boost could be make or break. Corporate insolvencies across all sectors are projected to exceed 24,000 this year, an alarming figure that reveals ongoing financial challenges.”

Notes to editors

*The Insolvency Service August 2025 corporate insolvency data shows that 2,032 companies failed in August. This figure excludes company voluntary arrangements which are not considered to be an insolvency process.