February 2026 insolvency statistics, Azets response

• There were 1,878 corporate insolvencies in February 2026, 7.4% more than in January 2026 (1,749) and 6.8% less than in February 2025 (2,015).

Covering the Yorkshire region, Richard Oddy is a partner, licensed insolvency practitioner and business restructuring, turnaround and rescue expert at regional accountancy and business advisory firm Azets, with offices in Leeds, Bradford and York.

He said: “Corporate insolvencies reached a four month high in February, as the consequences of a poor Christmas trading period, ongoing creditor assertiveness, continued cost pressures, and issues accessing finance came to a head and led to more firms turning to an insolvency process to help address their financial issues and their debts to their creditors.

“While the figures for last month are lower than they were in February 2025 and February 2024, they are still well above pre-pandemic levels, and with further cost increases coming this April and geopolitical issues likely to affect inflation and put a further strain on margins, costs and consumer spending, insolvency numbers are likely to remain high – at least in the short-term.

“We know this Christmas was a disappointing one for many businesses, with inflation the real driver of increased retail sales, footfall falling as more customers turned to online shopping, and people being careful about how and where they spent their money. Coming off the back of a long period of rising costs and falling revenues for firms in the retail and hospitality sector, this has driven distress and requests for insolvency advice and support – and will continue to do so now we’re into a time when demand is lower in both industries.

“The ongoing war in Iran will have a similar ripple effect on inflation and energy costs to the one that followed the start of the Ukraine conflict and is likely to lead to inflation rising and further increases in outgoings. There won’t be a business in the country that won’t be affected by this and it could be a cost too far for those whose finances are tight and whose customer base won’t be able to absorb increases in prices.

“From a sector perspective, haulage and travel firms are likely to feel the effects of the war first, especially those travel firms whose business is focused on selling or delivering long-haul flights, but we can expect to see more Brits choosing to holiday at home this year, which will be a bonus for hotspots and businesses across the UK.

“We are also seeing firms in the unregulated side of financial services facing difficulties and more instances of fraud in this area, and construction businesses continuing to struggle with shrinking margins and late payment.

“On a more positive note, our SME clients remain typically resilient as their size and the hands-on position of their directors means they’re able to spot, respond and address financial issues very quickly. The Spring Statement brought little by the way of help for this kind of business though, and we need the Government to take an urgent look at how it can address the cost issues SMEs face, which are holding them and the wider economy back and contributing to levels of corporate insolvency.

“Our message to directors is a simple one: seek advice as soon as you start to become concerned about your business’ finances. Much like speaking to a mechanic when the car warning light comes on, if you’re starting to worry about your cashflow or stock levels, or paying staff, taxes or suppliers, pick up the phone and speak to an advisor. It’s a hard call to make and a hard conversation to have, but you have more options and a better chance of turning your situation around if you seek advice as soon as you become worried about your business and its financial position and when the signs there may be something wrong first show themselves.”

 

Image caption (above): Richard Oddy is a restructuring and insolvency partner covering the North East for Azets, with offices in Durham, Newcastle and Teeside. Azets is a UK top 10 accountancy and business advisory firm.