Insolvencies update: June 2026 and the second quarter

• There were 1,845 company insolvencies in England and Wales in June 2026, bringing the total for the second quarter to 5,773  
• The company insolvency rate in the last 12 months to June 2026 was 50.5 per 10,000 companies: one in 198 companies  
• June insolvencies were similar to the number in May (1,849), but 10% lower than in June 2025  
• Numbers for the month were boosted by approximately 60 connected companies in the real estate sector entering administration 

• 1,364 CVLs for June 2026 (74% of insolvencies) and 4,267 for the quarter, almost identical to the 4,268 in Q1 
• 276 compulsory liquidations for the month, and 941 for Q2, up from 822 in Q1 
• 191 administrations for the month, bringing the quarterly total to 505 (from 550 in the first quarter) 
• 14 CVAs and 59 for Q2 (from Q1’s 43) 
• No receivership appointments in June, with one in the second quarter, as in the first 

As in the Q1 update in March, administration numbers in June were boosted by about 60 connected companies in the real estate sector entering administration, following 200 over March and April. The average monthly number of administrations in the first half of 2026 is now 41% higher than the 2025 monthly average.   

As in the first quarter, the construction sector accounts for the highest number of insolvencies – 17% of all cases in the 12 months to June 2026, again closely followed by wholesale and retail trade (15%), and accommodation and food service activities (14%). Even so, numbers for all these sectors, as well as most others, are lower than for the 12 months to June 2025. 

Overall, company insolvency volumes over the past two years have been at the highest levels seen since 2008/09, but with an increased number of companies registered, recent insolvency rates (50.5 per 10,000 in June) remain much lower than the peak rate of 113.1 during that recession.  

The June data suggests we're moving from a period of rising insolvencies to one of sustained but stabilising distress. CVLs, predominantly director rather than creditor led, still dominate, and administration numbers are being boosted by large connected real-estate cases. However, insolvency rates (failures per total companies) remain less than half the peak seen during the financial crisis despite volumes being near post 2008 highs.

It’s no surprise to see construction continue to suffer. With companies tied to fixed-price multi-year contracts, they’re in a difficult position, unable to pass on significant rises in material input costs or national insurance increases. 

The latter also continues to hit the hospitality and retail industries hard, given their reliance on low-paid and part-time workers, many of whom have been dragged into NI for the first time by the outgoing government. All these sectors will be hoping a new government might bring some relief.

What that relief may look like is uncertain, though. With inflation still above the Bank of England’s target and cost pressures persisting, hopes of interest rate cuts aren’t high. The new government, meanwhile, is committed to fiscal rules that strongly suggest it’s going to have little scope for tax cuts in the coming Autumn Budget.

For now, businesses look set to continue to face strong headwinds. Those who are beginning to struggle should make sure they don’t ignore the warning signs and take advice early before their options narrow.