Company Insolvencies September 2026: Down 5% as Administrations Fall 44%

What the September 2026 figures show

Creditors' voluntary liquidations (CVLs), where an insolvent company decides to wind itself up and involves its creditors, still dominate at 1,420 cases, or 75% of the total. The remaining cases were 341 compulsory liquidations, 102 administrations and 19 company voluntary arrangements (CVAs). There were no receivership appointments. The figures are seasonally adjusted, except CVAs, which are too few to adjust.

Procedure	Sep 2025	Aug 2026	Sep 2026	Change vs Sep 2025
Total company insolvencies	1,973	1,953	1,882	Down 5%
Creditors' voluntary liquidations	1,555	1,431	1,420	Down 9%
Compulsory liquidations	273	321	341	Up 25%
Administrations	128	182	102	Down 20%
Company voluntary arrangements	17	19	19	Up 12%
Receivership appointments	0	0	0	None

Source: Insolvency Service, Table 1, England and Wales, seasonally adjusted. All figures are provisional and may be revised.

Are company insolvencies rising in the UK?

No, not on the latest data. Monthly company insolvencies in the first nine months of 2026 were below the average of the preceding three years, driven by fewer CVLs. The average monthly CVL count in 2026 so far is 7% lower than in 2025.

The better long-run measure is the insolvency rate. In the 12 months to 30 September 2026, 49.9 in every 10,000 companies on the effective register entered insolvency, about one in 200. A year earlier the rate was 52.8. That is far below the peak of 113.1 per 10,000 in the 2008 to 2009 recession, partly because the register has more than doubled in size since then. Volumes remain high by historical standards, though: the Insolvency Service notes that numbers since the second half of 2022 have been at levels last seen in that recession.

Why companies in administration fell 44%

The September fall in administrations is mostly a statistical echo. More than 250 connected companies in the Real Estate sector entered administration between March and August 2026, inflating those months. Without that group, September looks ordinary: 102 administrations, 20% fewer than a year earlier. Across the first nine months of 2026, the monthly average is still 29% above the 2025 average.

Administration is a rescue tool first. Under paragraph 3 of Schedule B1 to the Insolvency Act 1986, the administrator must aim to rescue the company as a going concern, or failing that achieve a better result for creditors as a whole than a winding up, and only then realise property for secured or preferential creditors. Our explainer on what happens when a company goes into administration sets out the UK rules for creditors and directors, and the Aston Martin creditors' threatened action over a brand rights transfer shows how quickly asset sales become contested.

Compulsory liquidations are climbing

Compulsory liquidations rose to 341, 6% more than in August and 25% more than in September 2025. This is the creditor-driven procedure: a court winds the company up, usually on a creditor's petition. In 2025 compulsory liquidations reached their highest level since 2012, up 15% on 2024.

The usual trigger is a debt the company cannot pay. Under section 123 of the Insolvency Act 1986, a company is deemed unable to pay its debts if it ignores a written statutory demand for more than £750 for three weeks, if a judgment debt goes unsatisfied, or if a court is satisfied that it cannot pay debts as they fall due or that its liabilities exceed its assets. Creditors holding overseas judgments face an extra step; see our guide on how to enforce a foreign judgment.

Which sectors are failing

Construction again had the most insolvencies in the 12 months to September 2026, with 3,873 cases, 17% of those with an industry recorded. It was followed by wholesale and retail trade (3,364), accommodation and food services (3,208), administrative and support services (2,202), professional, scientific and technical activities (1,897) and manufacturing (1,827).

All of the larger sectors saw falls on the previous 12 months, from 10% in wholesale and retail to 2% in construction. Payment disputes are a frequent precursor in building supply chains, which is why construction adjudication and specialist construction lawyers often sit alongside insolvency advice.

Scotland, Northern Ireland and restructuring plans

The picture outside England and Wales is weaker. Scotland registered 117 company insolvencies in September 2026, 14% more than a year earlier, though its 12-month rate fell to 49.0 per 10,000. Northern Ireland registered 45, up 61%, and its 12-month rate rose by 5.3 to 42.6 per 10,000. These figures are not seasonally adjusted.

The rescue tools created by the Corporate Insolvency and Governance Act 2020 remain niche. September brought three moratoriums and two restructuring plans in England and Wales. Since 26 June 2020, 86 companies have obtained a moratorium and 64 have registered a restructuring plan. Recognition of such plans abroad depends on local law, as Malaysia's new cross-border insolvency act shows.

What creditors and directors should do now

The rise in compulsory liquidations suggests creditors are pressing harder, so suppliers should review exposure to UK counterparties and act early on overdue debts. Directors face the other side. Under section 214 of the Insolvency Act 1986, a director who knew or ought to have concluded that insolvent liquidation or administration could not be avoided can be ordered to contribute to the company's assets, unless they took every step to minimise creditors' losses.

Owners choosing a route should know that GOV.UK lists three types of liquidation: creditors' voluntary, compulsory and members' voluntary for solvent companies. Personal finances are also strained: 11,894 individuals entered insolvency in September 2026, 9% more than a year earlier. Experienced insolvency and restructuring advisers, including UK insolvency specialists and firms listed under advisers in England, can help on either side. The next release is due on 17 November 2026.

Frequently asked questions

How many companies became insolvent in September 2026?

There were 1,882 registered company insolvencies in England and Wales in September 2026, 4% fewer than in August 2026 and 5% fewer than in September 2025. Scotland recorded 117 and Northern Ireland 45. The Insolvency Service published the figures on 20 October 2026.

Are company insolvencies rising in the UK?

Not in England and Wales. Monthly numbers in the first nine months of 2026 were below the average of the previous three years, and the 12-month insolvency rate fell to 49.9 per 10,000 companies from 52.8. Northern Ireland's rate rose, and Scottish numbers were up on September 2025.

Why did administrations fall so sharply?

More than 250 connected Real Estate companies entered administration between March and August 2026, inflating those months. September's 102 administrations were 44% fewer than August and 20% fewer than September 2025, but the 2026 monthly average remains 29% above 2025.

What is the difference between a CVL and a compulsory liquidation?

In a creditors' voluntary liquidation the company's members resolve to wind up an insolvent company, with creditors involved. A compulsory liquidation is ordered by the court, usually on a creditor's petition. CVLs made up 75% of September's insolvencies; compulsory liquidations rose 25% year on year.

Which industries have the most insolvencies?

In the 12 months to September 2026, construction led with 3,873 insolvencies, followed by wholesale and retail trade (3,364) and accommodation and food services (3,208). Most sectors saw fewer insolvencies than in the previous 12 months.

When are the next insolvency statistics published?

The Insolvency Service has scheduled its next monthly company and individual insolvency releases for 17 November 2026. All figures are provisional and can be revised in later editions.

Sources

1. Insolvency Service: Commentary, Company Insolvency Statistics September 2026 (20 October 2026)
2. Insolvency Service: Commentary, Individual Insolvency Statistics September 2026 (20 October 2026)
3. Insolvency Act 1986, section 123: definition of inability to pay debts
4. Insolvency Act 1986, Schedule B1, paragraph 3: purpose of administration
5. Insolvency Act 1986, section 214: wrongful trading
6. Corporate Insolvency and Governance Act 2020
7. GOV.UK: Liquidate your limited company

About this article

This article was researched and written by The Corporate INTL Newsroom, which covers cross-border legal, regulatory and business developments for lawyers, professional advisers and financiers in over 150 jurisdictions. Every figure is checked against the Insolvency Service's published statistics and the legislation linked above. It is general information, not legal or financial advice: for a specific matter, speak to a qualified insolvency practitioner or lawyer. Last reviewed 24 October 2026. More analysis is on our news page, and you can subscribe for updates.