More retail insolvencies to come without government intervention
Today’s company insolvency statistics shows that retail trade insolvencies were down 12% to 169 in June 2025 from the previous month (192) and down 17% year-on-year from 203 in June 2024.
Gordon Thomson, restructuring partner at leading audit, tax and consulting firm RSM UK, said: “Retailers enjoyed a positive month of trading in June, helped by the hot weather and the start of major sporting events and festivals, leading to fewer insolvencies than in prior periods, but how much longer will this good run last?
“Some retailers have not kept up with changing consumer preferences or innovated sufficiently by investing in business transformation, and for others, the sharp rise in costs is threatening to become too much to bear. Indeed, the various pressure points are being felt across the retail sector with several big high street names triggering formal restructuring processes in order to survive.
“Employment remains the number one cost for retailers, and we’re seeing this come through as the number of people employed in the industry continues to fall. Retailers are also putting the brakes on hiring, but while this may help to keep costs under control in the short-term, it could be detrimental to the level of customer service they’re able to offer.
“The Chancellor has some difficult decisions to make in the upcoming budget, with a significant fiscal black hole to fill, something will have to give. It’s clear consumers remain cautious and are reluctant to open their wallets, so until they have more long-term certainty and stability, we’re unlikely to see the consumer-led recovery that the industry desperately needs.
“There’s only so much burden retailers can take, particularly given they already have extremely tight margins. Those that are nimble, with robust supply chains and the right go-to-market strategy will be better positioned to deal with any further issues. It appears that without some meaningful support in the budget, the sector could see considerable deterioration before the upcoming Golden Quarter.”