More than 1,600 UK businesses filed for administration in 2025 – a 5% decrease compared to last year – according to analysis by full-service law firm Shakespeare Martineau.
However, the figure (1,631) remains 22% higher than in 2022, signalling that UK companies are still facing significant pressures despite some signs of economic stabilisation.
Notably, retail filings surged by 24%, rising from 237 in 2024 to 293 in 2025, making it the hardest-hit sector by a clear margin, according to data from The Gazette Official Public Record. Greater London remained the region with the most business failures, recording 390 administrations in 2025, compared with 393 in 2024.
Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said, “While the year-on-year drop in administrations is worthy of note, the overall picture for business remains challenging.
“With 1,631 appointments being made, we are still seeing more businesses enter administration than in 2021 and 2022, and distress remains widespread across multiple sectors and regions.”
Along with retail, hospitality, manufacturing, real estate and construction were the worst-hit sectors, collectively accounting for 56% of all administrations. All sectors, apart from retail, saw a slight decline in filings compared to last year.
He added, “The retail sector remains under significant pressure. Despite a slight easing of inflation and interest rates, consumers remain cautious and price-sensitive. Footfall continues to lag and many businesses have not been able to adapt to the new retail landscape.
“The drop in filings in hospitality, manufacturing, real estate and construction could be the result of earlier failures having already removed the weakest operators. It may also reflect a slowdown in activity, with firms putting investment and hiring decisions on hold due to continued uncertainty.”
Geographically, Greater London filings fell 1% (393 to 390). The North West increased by 15% to 286, along with the South East by 11% to 207. Yorkshire and the Humber (121) and the West Midlands (120) made up the rest of the top five.
Andy said, “While Greater London continues to record the highest number of administrations, the regional picture is becoming more mixed.
“The increases in the North West and South East suggest that financial distress is spreading beyond the capital, particularly in areas with high concentrations of consumer-facing and industrial businesses.
“This underlines that the challenges facing companies are not confined to one region and that pressures remain widespread across the UK economy.”
Despite an overall drop in administration volumes, Andy warned businesses not to be complacent.
He concluded, “These figures, while worthy of note, do not detract from the fact that the trading environment for many businesses remains highly challenging. Many companies are surviving through short-term fixes, but without sustained growth, improved consumer confidence and better access to funding, there are still choppy waters to navigate.
“Geopolitical uncertainty, post-election policy shifts, energy costs, the aftermath of the recent budget, and continued weak economic growth are still creating an unpredictable environment for business. Firms must remain agile and, above all, proactive.
“Our advice remains unchanged – seek expert help early. The sooner directors act, the more tools are available to protect the business and find a viable path forward.”
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