Fall back in insolvencies as retailers look to Golden Quarter for boost
Today’s company insolvency statistics shows that retail trade insolvencies were down 7% to 171 in August 2025 from the previous month (184), but rose 25% year-on-year from 137 in August 2024.
Gordon Thomson, restructuring partner at leading audit, tax and consulting firm RSM UK, said: “The fall back in retail insolvencies illustrates the summer holiday trading uplift with better weather and back to school derailing the uptick in insolvencies seen in July. On the surface this is positive, but some struggling retailers could be hanging on to see what the Golden Quarter brings to turn the tide of distress.
“The first half of the year showed encouraging signs of an uptick in consumer spending, but the second half of the year brings higher inflation and budget uncertainty which has the possibility to supress consumer confidence. This could put the brakes on spending, as seen in the second half of 2024, so retailers could be entering a more challenging trading period.
“One silver lining is that consumers have been saving to make the most of higher interest rates so they may choose to dip into these savings to bolster discretionary spending during the Golden Quarter. If the budget avoids hitting people’s pockets, bolsters retail investment to support growth and doesn’t spike inflation any further, then we could see a boost to consumer confidence at just the right time.”