THE number of firms going bust in 2025 is predicted to pass 26,000 by the year’s end as insolvency rates remain stubbornly high.
Analysts warn of little respite in sight, and expect similar numbers in the next two years.
A report by Allianz Trade said insolvencies are 30 per cent above pre-pandemic levels.
Around 2,000 firms are collapsing each month — the highest figure in three decades.
The surge has been blamed on rising wages, higher employee National Insurance contributions and tough inflation.
Maxime Darmet, senior economist at Allianz Trade, said: “Higher costs, wages and taxes dragging on businesses’ resources are the major driver.”
READ MORE ON STORE CLOSURES
The report forecasts that 26,750 businesses will have gone bust by the end of this year, with 25,900 to collapse next year, and 24,500 in 2027.
The hardest-hit sectors include manufacturing, wholesale and agriculture, with construction, retail and hospitality also feeling the strain.
Since the start of 2025, more than 30 well-known retailers have collapsed, leaving 2,681 shops empty and making 27,124 shop workers redundant.
Notable casualties include Bodycare, Claire’s and Poundland.
Countries like France and Germany are set to see even sharper rises in insolvencies, and rates are also climbing in the US.
TOMATO IS IN THE SOUP
TOMATO ENERGY, which supplies 12,000 homes, could go bust within hours after failing to fix its finances.
The firm filed a notice to appoint an administrator ten days ago.
Ofgem, which banned it from taking new customers in April due to poor cash reserves, last week threatened a £1.5million fine for breaking financial rules.
However, it said customers will not lose their supply if the company fails, and any credit balances are safe. If Tomato Energy goes bust, customers will automatically be switched to a new supplier.
THE BANK JOB
HSBC has hired former NATWEST chief executive David Lindberg as the new boss of its UK business.
He will start on December 8, replacing Ian Stuart, who moves to a new role as group customer and culture director.
Mr Lindberg said he was “ honoured to be joining HSBC”, adding: “HSBC UK serves over 15 million customers and plays a vital role in supporting the country’s economy.”
LISTING ON ICE
UNILEVER’S plans to spin off its ice-cream brands have been delayed by the shutdown of the US federal government.
New firm the Magnum Ice Cream Company, which will own Ben & Jerry’s, was to be listed in Amsterdam, London and New York next month.
But the government budget row meant the US Securities and Exchange Commission is not yet able to approve its registration for a listing.
