However, insolvencies were down 10% from 3,770 in the 12 months to March 2024 to 3,407 in the 12 months to March 2025.
The data, provided by the Government’s Insolvency Service, also found accommodation and food service activities were one of the top five industries that experienced highest number of insolvencies in the 12 months to 2025, along with construction, wholesale and retail, administrative and support and manufacturing.
Demonstrating resilience
RSM UK partner and head of leisure Saxon Moseley said: “Trading in the hospitality sector was particularly challenging in Q1, with sales down 0.6% in March according to the CGA RSM Hospitality Business Tracker, so it’s understandable that we’d see an uptick in insolvencies.”
He added: “However, insolvencies are still down on last year, demonstrating the resilience of many operators. The concern is that there will be more insolvencies to come following the rise in staff costs in April, combined with the wave of uncertainty surrounding tariffs.”
Moseley also predicted that many businesses would have tried to maximise trading up to the end of March before the additional cost pressures started to bite.
Fragile consumer confidence
“Consumer confidence remains fragile, and with inflation expected to rise throughout this year, this may well spook consumers even further.
“The hope is that the good weather and strong wage growth will be enough to entice people to get out and spend. Operators must keep a close eye on their cashflow, but there’s only so much pressure they can withstand.
“It’s clear that support from the Government is urgently needed to avoid more site closures,” he said.
Overall, the insolvency stats also found that the number of registered company insolvencies in England and Wales was 2,053 in April 2025, 3% higher than in March 2025 (1,996) but 5% lower than the same month in the previous year (2,163 in April 2024).
