Restaurants See the Largest Amount of Liquidations Survey Reveals

Businesses across the UK are grappling with ongoing economic challenges, with insolvencies remaining high. From April, increases to National Insurance contributions, the Minimum Wage, and the National Living Wage will add even more financial pressure.

Now, new data from the experts at Liquidation Centre has revealed the parts of the UK hit hardest by business liquidations, by analysing official figures from the Insolvency Service and ONS. The data exposes the sectors with the most insolvencies, as well as liquidation hotspots where companies are shutting their doors faster than anywhere else, revealing a divide between regions.

Key Findings:
• Restaurants (hospitality) have seen the highest count of liquidations across all years analysed (3,351).
• Norwich, East of England, has the highest liquidation rate in the UK, with 2026 already showing signs of an increase.
• The North West of England has the highest regional liquidation rate overall, at 3.26%, with several towns in the region appearing in the top 10.

Restaurants have seen the highest count of liquidations across all years analysed (3,351). Recently, brands such as TGI Fridays, Pizza Hut, and Leon, have all had to shut numerous restaurants across the UK, driven by rising costs and challenging trading conditions. The hospitality landscape has become increasingly challenging recently amid economic pressures, and it is crucial for businesses in this space to remain vigilant and keep a close eye on cash flow, manage overheads carefully, and act early.

Management consultancy activities rank second, with 3,082 liquidations. This data reflects the vulnerability of small advisory businesses that rely heavily on project-based income.
Development of building projects ranks third, with 1,507 liquidation counts. Higher borrowing costs, construction inflation and weaker demand have made it increasingly difficult for developers to complete projects. Information and technology consultancy activities follow in fourth with 1,861 liquidation counts.

Public houses and bars rank fifth with 1,507 liquidations. Pubs and bars have been experiencing a turbulent time in the current economic climate, with brands such as Revolution Bars, BrewDog, and numerous local pubs closing their doors. Recent news suggests one in eight pubs remain on the brink of insolvency.

Richard Hunt, Director at Liquidation Centre comments on what the figures mean for local economies, high streets and employment: “These figures show just how tough the environment has become for businesses across the UK, particularly in smaller towns. When companies enter liquidation this has a real visible impact on the local economy, especially on high streets. When businesses close their doors, it creates empty shop fronts, fewer jobs, and reduced footfall for other businesses. Over time, that makes it harder for the rest of the high street to survive.”

“With costs set to rise in April, including National Insurance, the Minimum Wage, and the National Living Wage, it’s more important than ever for directors to keep a close eye on cash flow, manage overheads carefully, and act early. Many business failures happen not because the warning signs aren’t there, but because tough decisions are left too late. By regularly checking stock, pricing, and staffing, businesses can respond quickly when numbers start slipping and give themselves a better chance of staying profitable. In this uncertain climate, being proactive can make all the difference.”