Retail insolvencies tick up in March ahead of post-Budget headwinds

Today’s company insolvency statistics shows that retail trade insolvencies in March increased 10% to 144 from the previous month (159) but are down 6% year-on-year from 169 in February 2024. Retail insolvencies were also down 12% year-on-year from 2,179 in the 12-month period to March 2025 to 1,907.

Gordon Thomson, restructuring partner at leading audit, tax and consulting firm RSM UK, said: “Although retail insolvencies have ticked up since last month, we are still in a better position than last year. The increase in March indicates that some retailers emerged from the Christmas period in a vulnerable position and the incoming surge in business rates and employment costs were too much to sustain.

“Better weather has driven stronger than expected economic growth and retail sales in Q1 which should help to offset the cooling effect of post-Budget headwinds, a fall in consumer confidence in April and tariff uncertainty. In an ever-changing business landscape, taking control of cashflow will increase resilience and allow retailers to respond to any changes to trade or unexpected headwinds that may come this year.”