Easter is traditionally a time of renewal and optimism. However, for many UK businesses in 2025, the promise of a fresh start has collided with a harsher economic reality.

Instead of a seasonal bounce, April has brought a fresh wave of insolvencies, closures, and financial distress. Several forces are converging at once. Seasonally low consumer spending following the post-Christmas lull continues to bite. Q1 financial filings have exposed deep cashflow weaknesses. HMRC pressure is mounting, particularly on companies already burdened with unpaid tax and Bounce Back Loan arrears. For many, the new financial year hasn’t meant a new beginning but a reckoning. In the last few days, the Insolvency Service has disqualified 1000 directors, a well known travel operator’s administration has disrupted 5000 holidaymakers’ operations and Cardiff Rugby’s insolvency has left fans disillusioned.

We’re taking a closer look at the recent collapses, government measures, and restructuring efforts that signal the true state of UK businesses in the first weeks after Easter, and what they tell us about the road ahead.

Insolvency Overview for Q1

Despite a relatively stable first quarter, the UK is bracing for a significant rise in company insolvencies as global economic uncertainty, protectionist trade policies, and domestic pressures begin to mount.

Data from Interpath’s analysis of Companies House filings reveals 330 administrations were recorded in Q1 2025. This is a marginal increase from 321 in Q1 2024. While these public figures suggest stability, this calm may be short-lived. Our platform has already tracked 72 administrations in April alone, and this number will only grow hereon. 

With US-imposed universal tariffs reverberating across global markets, corporate confidence is beginning to falter. Businesses are already reacting by delaying expansion plans, freezing capital investment and hiring, and reassessing their exposure to fragile supply chains.

The UK’s manufacturing and automotive sectors are expected to bear the brunt of this economic shock in the coming months, particularly if a bespoke trade agreement isn’t secured. Construction continues to be the most vulnerable right now. Services industries are likely to feel the ripple effects later in the year as demand cools and margins tighten.

Several high-profile collapses already reflect these shifting tides: Encino Trading Services cited supply chain disruption from the war in Ukraine, while Technicolour’s downfall followed escalating labour costs tied to the Hollywood strikes. These cases underscore how geopolitical events and labour market pressures are combining to destabilise previously resilient sectors.

While administration filings have remained broadly consistent across sectors, retail edged ahead with 43 cases, followed closely by construction and business services (42 each), and leisure and hospitality (29). 

Key Locations to Track

Regionally, Scotland has seen a modest rise in insolvency activity during Q1 as compared to Q4 2024. However, insolvency increased in every region across the UK except Scotland. Northern Ireland saw the sharpest rise, with activity doubling, while Wales experienced the smallest uptick at just 6%.

The Yorkshire and Humber region saw a 27% increase in insolvency-related activity in the region in March. The South East, including Wiltshire and the Thames Valley, has seen a 23% surge in March alone. R3’s analysis of Creditsafe data shows a rise in both administrator and liquidator appointments as well as creditors’ meetings. 

The South East now ranks sixth for insolvency-related activity in the UK, following Greater London, the North West, East Anglia, the West Midlands, and Yorkshire & Humberside. All regions saw an uptick in activity. While the number of startups in these regions has also increased, the stats are still concerning.

While smaller enterprises are facing challenges such as higher National Insurance contributions and the minimum wage increase, they will be relying on both government support and professional advice to navigate these tough times. 

The latest Office for Budget Responsibility forecast, predicting modest GDP growth of just 1.0% in 2025, offers little reassurance for businesses facing these challenges. Businesses should remain adaptable and seek expert guidance to stay resilient and take advantage of any opportunities that arise, despite the economic uncertainty.

Insolvency News | Air Service Training Scotland in Financial Distress

A Scottish training company with over 90 years of history in training pilots and aircraft engineers has entered administration.

Founded in 1931, Air Service Training (AST) has educated more than 190,000 engineers from over 150 countries. However, the company has faced ongoing financial difficulties, which worsened after the Covid pandemic, resulting in a decline in student numbers, fewer commercial contracts, and rising costs.

A company spokesperson said, “AST has been grappling with financial challenges for some time. After exhausting all options to save the business, the board has made the difficult decision to enter administration. Our primary concern throughout has been for our staff and students, and we are working closely with the administrators to ensure the best possible outcome for all parties involved.”

The company has secured funding to continue its BSc in Aircraft Maintenance Engineering and Management programme until the end of the academic year, while all other courses will be discontinued. A team of 28 employees will remain with the company until the summer to deliver the BSc course to 46 students.

Insolvency News | The Second Insolvency of Ralph & Russo

Ralph & Russo, the haute couture fashion house, is once again on the verge of insolvency as it struggles under new ownership to maintain its relevance. Founded in 2010 by Tamara Ralph and Michael Russo, the luxury brand sought creditor protection three years after being rescued from bankruptcy by American investors.

Once beloved by A-list celebrities such as Adriana Lima, Kylie Jenner, and the Duchess of Sussex, the business has been struggling for a few months. 

The brand first encountered financial difficulties in 2021, when celebrity endorsements failed to prevent significant losses caused by the pandemic. In March of that year, administrators were called in after the company’s first insolvency. The situation led to a rift between Ralph and Nick Candy, the property developer who had loaned £17 million to the business. Ralph resigned during the collapse, and Candy’s vehicle, which was owed millions, pursued legal action against her. Other investors, including Phones4U founder John Caudwell and German financier Lars Windhorst, were also impacted.

During its first insolvency, administrators explored selling luxury gowns at discount outlets like Bicester Village. They ultimately secured a £3.5 million sale to American entrepreneurs Tai Lopez and Alex Mehr, who took over the brand through Retail Ecommerce Ventures. However, Lopez and Mehr, known for acquiring failing brands such as Dressbarn and Radio Shack, soon faced their own financial struggles. In March 2023, they appointed restructuring lawyers at Kirkland & Ellis.

Ralph & Russo Ventures filed a court document indicating its intent to appoint administrators on April 14, 2025. Womble Bond Dickinson, a London law firm, has been named as its legal representatives. The court filing, which provides ten days of protection from creditor claims, is a precursor to full insolvency.

To find out more insights about the UK’s insolvency market, stay tuned to Administration List.