Aaron & Partners’ Restructuring and Insolvency team has responded to the latest corporate insolvency figures, highlighting both the welcome fall in company insolvencies and the continued financial pressure facing businesses across the North West.
The team, which advises businesses, directors, lenders and insolvency practitioners on complex financial and operational challenges, says the figures offer some respite but also underline the importance of seeking early, specialist advice when trading conditions remain uncertain.
The latest figures from the government’s Insolvency Service show that corporate insolvencies in England and Wales decreased by 10% in May to 1,868, compared with April’s figures. May’s total was also 16% lower than the same month in 2025.
The figures have been welcomed by R3, the UK’s restructuring, turnaround and insolvency association. However, longer-term data continues to highlight the persistent pressures facing businesses in the North West.
A review of the last ten years of Insolvency Service data shows that, in 2025, the North West had the second highest rate of business insolvency in England and Wales, with 136 insolvencies per 10,000 businesses. A total of 2,830 businesses in the region became insolvent during the year.
Only the North East recorded a higher rate, at 143 insolvencies per 10,000 businesses. More broadly, the data highlights a longstanding trend, with northern regions consistently recording the highest insolvency rates in every year since 2015.
The North West also had the highest rate of businesses entering administration last year.
Mark Davies, chair of R3’s North West committee and Head of Restructuring and Insolvency at Aaron & Partners LLP, commented:
“It’s welcome news that corporate insolvencies in England and Wales saw a 10% monthly decline in May and that levels were also down on the same month in 2025.
“However, alongside these figures, new data from the Insolvency Service on the past decade of insolvency statistics highlights the longer-term pressures facing our region. The North West has one of the highest rates of business insolvency in England and Wales, which reflects the region’s large base of small and medium-sized businesses, as well as its exposure to sectors such as hospitality, retail and manufacturing. These sectors have faced sustained pressure from rising costs, tighter margins and shifting demand in recent years.
“Looking ahead, the prospect of a World Cup bounce, especially if England and Scotland progress in the tournament, could provide an uplift in trade for pubs, restaurants and shops helping to improve cashflow for some sectors.
“Business owners will also be hoping for a more positive outlook following the deal reached between the US and Iran though it will take time for this to translate into better trading conditions.
“Set against this, the broader economic backdrop remains challenging. Political uncertainty in the UK continues to weigh on consumer and business confidence, offsetting the benefits of stabilising inflation and the hold in interest rates.
“In this climate, demand for qualified advice from R3 members remains high. Seeking support at an early stage can make a real difference to the options available and the outcomes achieved.”
Aaron & Partners’ Restructuring and Insolvency team works closely with clients to understand their commercial position, assess the options available and provide clear, practical advice at every stage, from early signs of financial pressure through to formal insolvency processes.
For businesses facing cashflow concerns, creditor pressure or uncertainty about their next steps, seeking specialist advice early can help preserve value, protect options and support more effective decision-making.
You can read more about the issues raised in R3's original release.
