Fresh figures published by the Insolvency Service reveal that 1,882 companies entered insolvency in September 2026, down five per cent on the same month last year.
However, behind the headline improvement, compulsory liquidations rose by 25 per cent year-on-year to 341 cases.
Compulsory liquidations generally follow court action to wind up a company, often after a creditor has pursued an unpaid debt.
Molly Monks, insolvency specialist at Parker Walsh – which handles insolvency cases across Cumbria – says the numbers show “not every struggling business gets to choose how it closes”.
Ms Monks stated: “When creditors take matters to court, directors can have far fewer options left on the table.
“For…