Retail and London bear the brunt as business administrations remained high in 2025

"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,"

"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."

""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.""

1,631 UK businesses entered administration in 2025, a 5% year-on-year decline but 22% above 2022 levels, indicating persistent commercial stress. Retail filings rose 24% to 293, making retail the most affected sector. Greater London recorded the highest regional failures with 390 administrations in 2025. Retail, hospitality, manufacturing, real estate and construction together accounted for 56% of administrations. Other sectors mostly saw slight declines in filings. Consumer caution, weak footfall and difficulty adapting to the new retail landscape are pressuring retailers. The fall in failures across several sectors may reflect earlier exits of weaker firms or a slowdown in business activity.

Read at London Business News | Londonlovesbusiness.com