EY comments on Insolvency Service October 2025 company insolvency data

Simon Edel, Financial Restructuring Partner at EY-Parthenon, said: “The small uptick in overall company insolvencies in October, alongside a more significant 19% year-on-year rise in administration activity, are the latest signals of the enduring effects of ongoing economic, policy, geopolitical and earnings pressures that businesses are having to content with. 

“Many firms are still struggling to offset higher employment costs – either through pricing or productivity gains – whilst also contending with structural changes to their markets and external threats, including cyberattacks. 

“Companies are now bracing themselves for what could be another difficult Autumn Budget, and further challenges will lie ahead. In this turbulent economic environment, they should remain focused on strengthening liquidity to ease debt pressures. 

“Since the 2008 global financial crisis, insolvency has played less of a role in complex restructurings. However,  with persistent economic uncertainty, rising distress, and challenges like liquidity constraints and value erosion, we expect it to become more common as companies and stakeholders seek ways to protect value.  

“Being able to demonstrate a reliable and measured scenario-based forecasting approach, alongside a robust trading performance, will be crucial to building stakeholder confidence and avoiding difficulties when it comes to refinancing.”