Creditors are moving to shut down struggling companies at the fastest rate in at least three years, according to new figures obtained from the Ministry of Justice.
Courts in England and Wales received 7,049 winding-up petitions in 2025 – up 11% on the 6,337 lodged in 2024 and 35% higher than the 5,220 recorded in 2023, HM Courts & Tribunals Service data shows.
The pressure has intensified into 2026. Petitions in the first quarter reached 1,885, up 5% on the same period in 2025 and 66% above 2023. March 2026 alone saw 745 petitions, the busiest March in the three years and one of the highest monthly totals recorded, behind only April 2025 (861) and July 2024 (843).
A winding-up petition is the most serious enforcement step a creditor can take against a company that has failed to pay its debts. If granted, it results in compulsory liquidation. Once a petition is advertised, the company’s bank accounts are typically frozen within hours.
The new figures suggest creditor pressure is building even as headline insolvency numbers have eased. The Insolvency Service reported that registered company insolvencies in early 2026 were running below the levels seen between 2022 and 2025.
But petitions, which precede compulsory liquidation and act as an early-warning indicator of distress, are still climbing. HMRC is widely understood to be behind the majority of petitions, having stepped up enforcement of unpaid VAT, PAYE and corporation tax since the Covid-19 pandemic.
Molly Monks, licensed Insolvency Practitioner and founder of Parker Walsh, said:“These figures show the gap between the headline insolvency statistics and what is actually happening on the ground.
“Registered insolvencies may have eased but creditors, led by HMRC, are losing patience faster than ever and the petition numbers prove it.
“Often a winding-up petition is the first time a director realises how serious their position is. Once it is advertised the bank accounts are frozen and the options narrow dramatically.
“My advice to any business that has received a statutory demand or fallen behind on VAT or PAYE is to take advice immediately. The earlier you act, the more likely a rescue is still on the table.”
