Business administrations across the United Kingdom rose by 41 per cent in January, with 151 companies entering insolvency proceedings, according to official figures.
Data from the Insolvency Service showed the total was also 14 per cent higher than in the same month last year.
Several well‑known retail and hospitality brands have entered administration since the start of 2026, including TGI Fridays, Claire’s, Russell & Bromley and The Original Factory Shop.
Administration processes have also affected The Revel Collective and Quiz, while Game Retail has confirmed plans to appoint officers.
Industry data suggests thousands of jobs are potentially at risk across retail and hospitality as a result of recent insolvencies.
TGI Fridays secured a partial rescue deal after its assets were acquired by a subsidiary of the company that controls the global brand.
Administrators closed 16 restaurants and made 456 staff redundant as part of the restructuring. Administrators overseeing several other affected businesses have not yet confirmed whether further rescue arrangements can be secured.
Retail and hospitality firms have faced rising cost pressures linked to wage increases and weaker consumer spending. Analysts said labour costs have risen while demand across discretionary sectors has remained subdued.
Over 150 retail and hospitality companies were insolvent so far
|
GETTY
Further cost increases are expected in April when business rates rise following reforms announced in the Chancellor’s November Budget, adding pressure to retail, leisure and hospitality businesses already operating on narrow margins.
Industry groups have warned that additional cost burdens could increase insolvency risks for financially weaker firms.
Sarah Rayment, managing director and global co‑head of restructuring at Kroll, said: “The key question at this point in the year is whether distress and insolvencies will continue to rise given the pressures facing UK businesses.”
She noted some signs of stabilisation, including moderating inflation and expectations of potential interest rate cuts later this year, but said conditions vary significantly across sectors.
GAME has announced store closures | PA
“The reality is that every sector will face headwinds this year.”
Todd Davison, managing director at Purbeck Insurance Services, said business failures can also affect company directors personally.
“Many directors will have signed personal guarantees to secure loans, overdrafts or trade finance,” he said, warning that failed guarantees can put personal assets, including property and savings, at risk.
Business groups said directors increasingly rely on personal guarantees when securing lending during periods of tighter credit availability.
Financial advisers said directors should review lending agreements and guarantee exposure when performance begins to weaken.
The Insolvency Service said it continues to monitor insolvency trends across sectors as part of wider economic oversight.
Strain has been felt across the industry
|
PAIndustry specialists noted that insolvency levels typically rise during periods of higher operating costs and weaker consumer demand.
Analysts said retail and hospitality remain particularly sensitive to shifts in consumer confidence and discretionary spending.
Economic forecasters expect business cost pressures and spending patterns to continue influencing insolvency levels throughout 2026.
Restructuring specialists said early engagement with lenders and advisers can improve the chances of business survival during periods of financial stress.
Industry bodies said companies are continuing to assess cost structures and operational efficiency in response to changing market conditions.