Retail insolvencies fall as businesses look ahead to budget lifeline
Today’s company insolvency statistics show retail insolvencies fell by 8% from 171 in August 2025 to 157 in September 2025. However, insolvencies in the sector were up 13% year-on-year from 139 in September 2024.
Gordon Thomson, restructuring partner at leading audit, tax and consulting firm RSM UK, said: “The reduction in retail insolvencies shows that the summer sales momentum continued into September with kids and commuters returning to school and the office. However, the year-on-year increase in insolvencies is of concern, given sales expectations increase during the Golden Quarter, so any vulnerable retailers tend to hang on to feel the impact of a festive boost.
“The real risk is Budget uncertainty which could push consumers to tighten their belts even further, hitting spending in this all-important sale period. Additional tax burdens, layered on top of rising wage costs and stubborn inflation, could hit already depleted cash reserves and tip fragile operators into insolvency later this year.
“What is needed is targeted relief or investment incentives that could provide a much-needed lifeline for retailers to support a consumer-led recovery that could, in turn, help to boost the wider economy.
“Some retailers are adopting a ‘wait and see’ stance ahead of the budget, but standing still carries its own challenges. While it’s understandable that investment decisions are on hold until there’s greater clarity, businesses must act now to preserve cash flow, to manage costs and to protect the all-important customer experience.”