Company administrations rise as pressures persist across UK economy

Company administrations have risen year-on-year, as financial pressures grow for businesses across the UK. Driving the 6% overall spike is a sharp rise in financial services administrations, up 63% over the same period, according to Kroll research.

Administrations are a formal insolvency process designed to rescue business and maximise returns for creditors. Administrations are typically utilised for larger companies where a restructure is needed to save parts or all the business and tend to be a better barometer on the health of the economy, whereas company liquidations represent small and microbusinesses, with very few assets and debts.

In times of acute economic stress, the number of administrations is often taken as a bellwether of the market’s health. And amid a period of slow expansion, Kroll has found that the number in the UK has risen dramatically year-on-year – particularly in some of the country’s most important sectors.

A total of 649 companies entered administration between January and June 2026, marking a 6% increase from the 610 administrations recorded during the same period in 2025. The rise reflects continued pressure in key sectors, despite monthly figures remaining below pre-pandemic levels.

While that might still seem like modest expansion, the data highlights notable shifts within certain sectors. Manufacturing, construction and real estate continue to account for the highest absolute numbers, with 80, 77 and 59 appointments respectively. Financial services have seen administration numbers spike 63% compared to the first half of 2025, likely tied to regulatory pressures, funding challenges and market volatility.

At the same time, the downfall of Market Financial Solutions (MFS) may have played a role. The mortgage lender collapsed earlier in 2026, amid allegations of fraud – leading to an investigation by the Financial Conduct Authority.

Sarah Rayment, global co-head of restructuring at Kroll, said, “Last year, we saw a 20% increase across retail businesses. This year it’s across financial services where we are seeing more distress. However, look closely, it’s not necessarily a systematic issue with the industry, but many of these businesses are intermediaries or brokers that have failed as a consequence of the collapse of MFS. As a result, financial compliance is becoming a key topic of conversation among boards."

At the same time, many of the administrations are coming in the country’s largest trading hubs. While that might be expected to some degree – hosting more businesses means the risk of more administrations – London being the most active city for appointments with 211 appointments in 2026 sees the city more-than double the administrations in Manchester, which is itself a sizeable economy.

And while some sectors are performing better than in 2025, even this comes with a caveat. Retail administrations are down 23% compared to the first half of 2025, but the sector remains under pressure from uneven consumer demand, cost inflation and margin compression.