In 2025, the South East accounted for 13 per cent of all UK business administrations, ranking it the third-highest region for corporate insolvencies, according to analysis by Sussex law firm Mayo Wynne Baxter. A total of 207 businesses in the South East entered administration last year, out of 1,631 nationwide, representing a 5 per cent decline compared with 2024, based on figures from The Gazette Official Public Record.
Retail was the sector most affected, with filings rising 24 per cent from 237 in 2024 to 293 in 2025. All other sectors recorded slight declines in administrations. Greater London continued to record the highest overall number of business failures.
Nick Stockley, dispute resolution partner at Mayo Wynne Baxter, noted that while the reduction in administrations is significant, the business climate remains difficult. He said: “With 1,631 appointments being made, we are still seeing more businesses enter administration than in 2021 and 2022, and distress remains widespread across multiple sectors and regions.”
Stockley highlighted ongoing pressures in the retail sector, despite easing inflation and interest rates. He observed that consumer caution and low footfall continue to affect businesses, while many retailers struggle to adapt to the evolving market.
The decline in filings across hospitality, manufacturing, real estate, and construction may be due to earlier failures having removed weaker operators. It may also reflect a slowdown in activity, with firms deferring investment and hiring decisions amid persistent uncertainty.
While Greater London remains the region with the most administrations, Stockley emphasised that financial distress is spreading to other areas. He said: “The increases in the North West and South East suggest that financial distress is spreading beyond the capital, particularly in areas with high concentrations of consumer-facing and industrial businesses.”
He added that companies face widespread challenges due to geopolitical uncertainty, post-election policy changes, energy costs, recent budget impacts, and continued weak economic growth. Stockley concluded: “Firms must remain agile and, above all, proactive. Our advice remains unchanged – seek expert help early.”
