The number of UK businesses entering administration has surged in recent months, with over 150 businesses collapsing between December and January. According to official figures from the Insolvency Service, the number of company administrations jumped by 41% to 151 between December and January. This number is 14% higher than the same period last year.
The spike reflects mounting pressures on retail and hospitality businesses, where rising costs, online shopping and subdued consumer spending have created a challenging trading environment. Several high street giants have entered administration since the start of 2026.
Some of these include Claire’s, The Original Factory Shop, footwear retailer Russell & Bromley and Revolution Bars owner The Revel Collective who all entered administration last month. Clothing brand Quiz and LK Bennett brand went into administration this month.
Game Retail has also confirmed its intention to appoint administrators, while TGI Fridays was sold in a pre-pack deal to a subsidiary of Sugarloaf, the firm behind the global brand. However, 16 TGI restaurants were closed, resulting in 456 job losses.
Fast-food chain Leon was also hit and filed for administration in December leading to the closure of 22 locations and cutting 244 jobs as part of a major restructuring.
Sarah Rayment, managing director and global co-head of restructuring at Kroll, said: “The key question at this point in the year is whether distress and insolvencies will continue to rise given the pressures facing UK businesses.
“There are signs of resilience in the economy, inflation has steadied and markets expect interest rate cuts later in the year, but the picture is far from uniform”
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She added: “There is understandable concern across the high street economy, particularly retail, leisure and hospitality, where the debate around business rates reform adds to an already difficult trading environment.
“But the reality is that every sector will face headwinds this year.”
Despite the recent surge in administrations, overall company insolvencies in January rose 4% month-on-month but remained 14% lower than a year ago, according to the new figures.
Other figures also show the scale of the challenge facing UK businesses. According to the latest analysis from full-service law firm Shakespeare Martineau, published on January 9, 1,631 UK businesses went into administration in 2025.
Although this represents a 5% drop compared with 2024, it remains 22% higher than in 2022.