Business failures remain high as Dorset companies continue to struggle in a difficult trading environment.
New figures show that while corporate insolvencies across the UK fell slightly in June, CVL numbers remain higher than they were before the pandemic and reflect ongoing financial pressures.
Chris Tate, a restructuring and insolvency partner at Azets, said: “June’s corporate insolvency figures were dominated by Creditors’ Voluntary Liquidations (CVLs).
“While 50 fewer took place compared to last month and these are usually the most common insolvency process, CVL numbers remain higher than they were before the pandemic as directors lack the confidence and cash to keep their firms open in a trading climate that is dominated by rising costs, shrinking margins, and political and economic uncertainty.”
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Chris Tate, restructuring and insolvency partner at Azets (Image: Deep South Media)
In June, there were 1,845 corporate insolvencies in the UK, just four fewer than in May and 10 per cent lower than in June 2025.
Mr Tate said the continuing economic climate was making it difficult for businesses to survive.
Mr Tate said: “Compulsory liquidation numbers remain higher than they were at the start of this year as both public and private sector creditors continue to focus on chasing down debts and turning to the court to secure the money they’re owed, with the patience and forbearance shown in the pandemic years now a thing of the past.
“Ongoing political, geopolitical and economic instability is hitting growth, recruitment and rescue, and making it hard for firms to stay solvent.
“It costs more to hire staff, profits are falling and cashflow levels are under pressure – and firms have been fighting financial fires in one form or another since 2020.”
He said businesses had faced rising bills for rents, materials, products, and energy for six years, with no relief in sight.
Mr Tate said: “Energy costs remain a key concern for many – especially in sectors where these can’t be passed on to the customer.
“From a sectoral perspective, costs are still hitting retailers and hospitality firms hard, and hiring is falling as a result.
“While sales appear to be rising, increases in volume don’t always translate to an increase in value and many businesses in this sector are having to work harder to stay still in the current climate.”
He urged any business worried about finances to seek early advice, saying it can lead to more options for recovery.
