Fewer companies became insolvent in September, but more were wound up by the courts. According to the Insolvency Service, there were 1,882 company insolvencies in England and Wales in September 2026. That is 5% fewer than a year earlier. Compulsory liquidations, which are ordered by a court, rose 25% to 341.
01The numbers
Creditors' voluntary liquidations were the largest group, at 1,420. That is 75% of the total. They are started by a company's own directors, and they were 9% lower than a year earlier.
Administrations fell 20% to 102. Over the 12 months to September, one company in 200 entered insolvency.
Construction had the most insolvencies over those 12 months. Wholesale, retail and motor repair came next, then hospitality. All the figures are provisional.
02What is a compulsory liquidation?
It is when a court orders a company to be wound up. A creditor who is owed money can ask the court to do this by filing a winding-up petition. Directors can apply too.
So a rise in compulsory liquidations can mean more creditors are pressing for payment through the courts.
03What it means for you
If you sell on credit, check who owes you money. A customer who is slow to pay, or keeps moving payment dates, may be under pressure.
If a customer does fail, our guide on covering the cash gap when a customer goes under sets out the options.
Liquidations also put assets on the market. A liquidator sells the closed company's equipment, stock and brand, often quickly. Our guide explains what you can buy from a liquidator and how to fund it.
If you are thinking of buying, a business acquisition finance broker can tell you what is realistic before you bid.
