Retail insolvency holds steady, for now, warns RSM UK

Retail sector insolvencies in the UK remained broadly stable in April, according to new figures released today, but the outlook is increasingly clouded by a convergence of macroeconomic and geopolitical headwinds.

The latest company insolvency statistics show a modest 3 per cent rise in retail trade insolvencies from March to April 2025, reaching 165 cases, though still 10 per cent below the same month last year. Over a 12-month period, insolvencies fell 15 per cent, from 2,212 in the year to April 2024 to 1,889 in the year to April 2025 — a sign that, despite tightening margins and reduced discretionary spending, much of the industry is managing to stay afloat.

Gordon Thomson, restructuring partner at RSM UK, noted: “These latest figures show a marginal uptick month on month, but figures overall indicate that retail distress is holding steady. This is encouraging, and further evidence that most retailers are continuing to show operational resilience in a challenging trading environment. But looking ahead, the picture isn’t looking as rosy as some might hope.”

Indeed, analysts and retail operators alike are bracing for potential disruption. A “dismal” set of April retail sales figures, compounded by persistent inflationary pressure, higher household bills and broader global instability, from ongoing EU-China tariff tensions to volatility in key emerging markets, suggest turbulence may not be far off.

Longer-term risks are mounting, with upcoming increases to business rates, tax adjustments, and additional compliance burdens likely to put further pressure on the high street. Yet amid the caution, there are some silver linings: consumer confidence has remained steady into early summer 2025, and retailers are quietly hopeful that sustained warm weather and a gradual easing of interest rates may offer a much-needed lift as the year progresses.