10 UK towns and cities that have been hit hardest by store closures

If you’ve noticed your local high street looking particularly empty of late, that’s likely because businesses across the country are struggling with rising costs, higher taxes and declining consumer spending. Businesses throughout the UK are wrestling with persistent economic challenges, with insolvencies remaining high. From April, rises to National Insurance contributions, and increases to the Minimum Wage and the National Living Wage, will likely impose even more financial strain.

Using official Insolvency Service and ONS data, recent findings from the experts at Liquidation Centre have identified the UK regions most impacted by business closures. These statistics show ‘liquidation hotspots’ where companies are ceasing operations at the fastest rates, highlighting a regional divide. The latest analysis reveals that several smaller towns are experiencing some of the country’s highest business failure rates, with Norwich ranking first for company liquidations.

UK’s ‘worst’ areas to run a business

1. Norwich

Norwich has the highest liquidation rate (23.27%), ranking it among the worst locations in the country to operate a business, with 14,807 registered companies and 3,446 liquidations.

This equates to nearly one in four businesses in the area shutting down through liquidation. Norwich recorded its highest number of liquidations in 2025 (805), but its largest surge occurred in 2021, likely due to the pandemic.

So far in 2026, 311 liquidations have been documented, suggesting this year could be among the worst on record.

Chorley follows closely behind, with the second-highest liquidation rate (20.55%) and 1,908 liquidated companies. The figures indicate that businesses in smaller regional economies may be especially vulnerable to rising costs and reduced consumer spending.

Last year was Chorley’s worst year for liquidations across all years analysed (596), and so far in 2026, the town has already witnessed 186.

Burnley ranks third, with a liquidation rate of 12.03% and 633 liquidated companies. Burnley witnessed 184 liquidations in 2025, and so far in 2026, 39 have been documented.

If this trajectory continues, Burnley could see over 200 liquidations in 2026, making it the worst year for business closures to date.

Towns throughout the North West are feeling the pressure as rising operating costs push businesses to the brink. The region now tops the UK league for business closures, with a liquidation rate of 3.26% – the highest in the country.

Blaby is ranked fourth with a liquidation rate of 8.36%. Of the 8,249 registered companies in the Leicestershire authority, 690 have gone into liquidation.

While the rate is considerably lower than the top three, the statistics still highlight the financial strain confronting firms throughout the UK.

Richard Hunt, director at Liquidation Centre, outlines the impact these figures have on local economies, high streets, and employment. He said: “These figures show just how tough the environment has become for businesses across the UK, particularly in smaller towns. When companies enter liquidation, this has a real visible impact on the local economy, especially on high streets. When businesses close their doors, it creates empty shop fronts, fewer jobs, and reduced footfall for other businesses. Over time, that makes it harder for the rest of the high street to survive.

“With costs set to rise in April, including National Insurance, the Minimum Wage, and the National Living Wage, it’s more important than ever for directors to keep a close eye on cash flow, manage overheads carefully, and act early. Many business failures happen not because the warning signs aren’t there, but because tough decisions are left too late. By regularly checking stock, pricing, and staffing, businesses can respond quickly when numbers start slipping and give themselves a better chance of staying profitable. In this uncertain climate, being proactive can make all the difference.”

The UK’s ‘worst’ towns and cities for running a business

1. Norwich, Norfolk

5. Darlington, County Durham