Company failures have jumped higher again in March due to a surge in firms collapsing into administration as experts warned more may go bust as the Iran war and soaring wage bills send costs surging.
Latest data from the Insolvency Service shows the number of company insolvencies rose 7% month-on-month in March to 2,022.
Company administrations surged 52% between February and March to 235, and were 82% higher when compared with March 2025, while compulsory liquidations jumped 18%.
Company voluntary arrangements (CVAs) doubled during the month to 20, the figures showed.
Fuel and energy costs have been jumping higher due to the Iran war, which has hit some sectors hard already, such as manufacturing.
Renowned ceramics manufacturer Denby called in administrators late last month after struggling with rising costs, with sky-high energy prices said to be a key factor.
The Insolvency Service said administration figures were partly skewed by a one-off event, with more than 100 connected companies in the real estate sector collapsing last month.
But experts warned the underlying picture is worrying for businesses as cost pressures bite.
Tom Russell, president of restructuring professionals trade group R3, said: “While it may be too early to see the full impact of the worsening economic situation in the formal insolvency statistics, energy and fuel costs have risen significantly, and for many businesses this has come at the same time as customers are becoming more cautious with their spending.
“That combination is extremely challenging, particularly for businesses with limited financial headroom.”
Fuel and transport costs are also seen as a financial threat for many, coming on top of big increases in wage bills, according to Kroll.
Sarah Rayment, co-head of global restructuring at Kroll, said: “As we saw after the beginning of the Ukrainian conflict, when fuel prices surged, there was a direct impact on logistics, haulage and delivery businesses.
“There are already big companies saying that they will have no choice but to pass costs on to customers.
“It’s a lot more challenging for small and mid-sized companies and may sadly push many to the edge.”
