Company insolvency procedures explained
There were 23,938 company insolvencies in England and Wales in 2025, similar to 2024 and 5% lower than the 25,164 in 2023, which was the highest annual number since 1993 (Insolvency Service). A high volume doesn't mean formal insolvency is inevitable for your company: the earlier a struggling business takes advice, the wider the range of options that stay open. Insolvency Service, Company Insolvency Statistics December 2025
Data as of: 2025 annual figures, published 20 January 2026
| Procedure | Share of 2025 company insolvencies | What it is |
|---|---|---|
| Creditors Voluntary Liquidation (CVL) | 77% | Director-led closure of an insolvent company |
| Compulsory liquidation | 16% | Court winding-up, usually after a creditor petition |
| Administration | 6% | Rescue or better-than-liquidation procedure |
| Company Voluntary Arrangement (CVA) | 1% | Binding deal to repay creditors over time |
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A high national count does not change your own company's position, but it does mean creditors, lenders and HMRC are dealing with a lot of struggling businesses. The directors who keep the most options open are the ones who check their position early rather than waiting for a creditor to act.
General information, not advice about your company.
Methodology and source
This page explains the four main company insolvency procedures using the Insolvency Service official company insolvency statistics for England and Wales. In 2025 there were 23,938 registered company insolvencies, similar to 2024 and below the 2023 figure of 25,164, the highest annual number since 1993. Creditors Voluntary Liquidation is consistently the most common procedure, making up 77% of cases in 2025, which is why our guidance focuses on getting that route right. For the latest monthly numbers, see our UK company insolvency tracker.
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