The new year has begun with a significant wave of business collapses across the United Kingdom, continuing a trend that started in the final weeks of 2025. Major names from the fashion, energy, legal, and hospitality sectors have fallen into administration, putting hundreds of jobs at risk and highlighting the ongoing economic pressures facing UK firms.
Notable Collapses in January 2026
Consumer Energy Services (CES), based in Swansea and Treorchy, ceased trading with immediate effect on Friday, January 9. The energy company's collapse has resulted in hundreds of redundancies, impacting roles from sales advisors to heating and insulation staff. Administrators were appointed on the same day the firm announced it could no longer continue.
In the legal sector, A Vincent Solicitors has been listed on an insolvency marketplace. The Woolwich-based firm, which also has a Manchester office and over 24 staff, specialised in multilingual support for asylum and visa applications. Despite reportedly trading profitably in recent years, the firm encountered severe cash flow difficulties in 2025. A deadline of January 20 has been set for offers to acquire the business.
High-Profile Failures from December 2025
The final month of last year saw several prominent businesses falter. Fashion brand LK Bennett filed a notice of intention to appoint administrators on December 30. If the High Court application succeeds, it will mark the second insolvency for the brand since 2019. Reports suggest retailer Next may be a potential buyer for the firm.
The cricket-themed bar chain Sixes also entered administration after what were described as "challenging" trading conditions. Administrators from FRP stated that while some locations struggled, the brand had significant potential and interest from potential acquirers for its strongest sites.
In a major blow to the hospitality sector, Liberty Bar and Restaurant Group, which operates TGI Fridays' UK restaurants, filed its intent to appoint administrators on December 19.
Construction and Economic Headwinds
The construction industry felt the strain with the collapse of Warwick Ward Machinery Ltd. Administrators pointed directly to "wider economic headwinds" impacting the construction and waste recycling sectors as a primary cause for the company's failure. They noted that debt accrued during a transition to an Employee Ownership Trust (EOT) had become a significant burden amid difficult trading conditions.
This cluster of failures across diverse sectors in a short period suggests a challenging economic landscape. Experts warn it is plausible that more companies could face similar difficulties in the coming months of 2026, as persistent issues like cash flow pressures, high debt burdens, and reduced consumer spending continue to take their toll.
