The number of businesses facing Winding Up orders in the first months of 2025 has jumped to their highest levels since 2010.
More than 1,100 companies have been served with a winding up order according to analysis of published insolvency notices which is an increase of almost 25% compared to the same period in 2024.
In the same period nearly 2,200 businesses have received a winding-up petition, which is an increase of more than 20% since last year and is at the highest level since 2012.
Last year there were 3,403 Winding Up Orders made and 5,600 Winding Up Petitions filed. So far in 2025, there have been 1,196 Winding Up Orders and 2,343 Winding Up Petitions made – both on course to overtake last year’s totals.
Tom Russell, Vice President of R3 – the insolvency & restructuring trade body – said: “A number of economic and political issues are continuing to pile pressure on businesses, affecting firms across the supply chain.
“High costs and cautious consumer and client spending mean creditors are being more aggressive about pursuing the money they’re owed and aren’t afraid to turn to the courts to recover outstanding debts, while a large proportion of directors of insolvent businesses feel closure is the only option open to them after years of trading through tough conditions and with little hope of these improving.”
A WUP is not very hospitable
Over one in ten of over 300 companies facing winding-up petitions in April were in the retail and hospitality sectors which can be expected because both have large numbers of suppliers to service them and juggle their repayments and arrears.
Chris Horner, insolvency director with BusinessRescueExpert, said: “The figures show the precarious position many small and medium sized businesses find themselves in as they struggle to pay off arrears while contending with higher tax & wages along with sluggish growth.
“Receiving a winding up petition does not have to be terminal for a business – there are several steps they can take to settle it before it gets to court or offset its effects if full or partial repayment can’t be reached in time.
“Like most nasty or unexpected shocks – the first thing business owners or directors should do is get in touch with us.
“A free initial consultation is always excellent value for money and will give them an idea on what options they have and how quickly they can be implemented if they decide to pursue them.
“If you receive a Winding Up Petition then you should know that if you don’t engage with your creditors or handle it correctly then the likely outcome will be the closure of your business.
“Take action today to avoid this happening tomorrow.”