by Tom Russell
Turnaround, Restructuring and Insolvency Director
23 October 2025
Articleby Tom Russell
Turnaround, Restructuring and Insolvency Director
Corporate insolvencies in September 2025 rose by 2% compared to September 2024 but were 6% lower than in September 2023, pointing to signs of stabilisation in the business landscape.
Personal insolvencies, however, were 7% higher than a year ago, and have surged 54% compared to September 2023, reflecting the ongoing financial pressure on households.
The hospitality industry continues to face significant financial strain, with independent and regional hotels particularly vulnerable. Rising costs in staffing, maintenance, and food are squeezing margins, while seasonal fluctuations and cautious consumer spending add further pressure. Although some venues like spas and wedding destinations remain resilient, many operators are bracing for a challenging winter period.
Tom Russell, Director at James Cowper Kreston and President of R3, commented: “The hospitality sector continues to face difficulties, with the hotel sector being a case in point. Whilst specialist spa or wedding venues remain busy, for independent and regional hotels the higher staff, maintenance and food costs are impacting margins.”
Paul Davies, Partner at James Cowper Kreston, added: “The pressures on hospitality businesses are very real. At James Cowper Kreston, we are currently acting for several hotel and property businesses navigating financial distress. While the challenges are considerable, especially for independent hotels facing rising operational costs, there are typically a variety of options available to achieve the best outcome for stakeholders. Early engagement is key to preserving value and protecting jobs.”
With the November budget approaching, businesses and individuals alike will be hoping for measures that ease the burden and support recovery.
If your business is facing financial challenges, click here to speak to a member of our Turnaround, Restructuring and Insolvency team to find out how we can support your business.
Click here to read R3’s response to September 2025 insolvency statistics.