Despite the drop year on year, the number of insolvencies was far higher than most of the last decade, and remains at levels last seen during the 2008 financial crisis.
The figures also revealed that compulsory liquidations – where courts order firms to stop trading because they cannot pay their debts – jumped 14% to 3,230 in 2024 after a year-end surge.
The number of monthly compulsory liquidations soared by 53% year on year during December.
Administrations, an accounting process used when especially large companies hit the wall, also rose – up 2% over 2024 – and were 5% higher year on year in December.
David Hudson, restructuring advisory partner at business consultancy FRP, said it is “notable” that administrations have…
