Analysis of insolvency statistics by The Morning Advertiser showed on a month-by-month basis, June to July saw the biggest rise at 6.86% (from 306 to 327).
However, there were decreases in the numbers of insolvencies in a few months. From January to February, the figures fell from 273 in the first month of the year to 271 in the second, meaning a drop of 0.74%.
Furthermore, March to April also saw a smaller number of firms collapsing as while the start of spring saw 282 insolvencies, April had 277.
Data analysis
From that 277 in April, insolvency numbers increased in May to 296 and again into the summer months of June and July.
This means the number of insolvencies from January to July this year have increased from 273 to 327.
The most recent data, provided by the Government’s Insolvency Service, also found accommodation and food service activities were one of the top six industries that experienced the highest number of insolvencies in the 12 months to June 2025.
RSM UK said the latest increase was the third consecutive monthly rise in hospitality insolvencies.
Worrying trend
At the time, partner and head of leisure and hospitality Saxon Moseley said the continued uptick was a worrying trend and outlined how the sector has had a difficult year, with higher staff costs and rising inflation continuing to impact businesses already struggling with lower consumer confidence.
On the rise since the beginning of 2025, Moseley added: “Rising costs including food inflation, energy, national minimum wage and employers’ national insurance contributions have contributed to the increase in insolvencies this year, combined with sluggish consumer demand as noted in the CGA RSM Hospitality Tracker.
“Restaurants and bars in particular have been reporting negative like-for-like sales since the start of the year and shrinking margins have been felt more acutely by the smaller operators.”
