UK companies collapse into liquidation as Iran war blamed

Company failures jumped higher again in March due to a surge in firms collapsing into administration as experts warned more may go bust as the Iran war and soaring wage bills send costs surging.

Last month, Kidlington-based Cooper & Franklin Limited collapsed into liquidation, as did William Harvey Medical Limited of Weston-on-the-Green, Oxford-based Netvide Limited and Park Lane Developments (Oxfordshire) Limited of Bampton.

Latest data from the Insolvency Service shows the number of company insolvencies in the UK rose seven per cent month-on-month in March to 2,022.

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Company administrations surged 52 per cent between February and March to 235, and were 82 per cent higher when compared with March 2025, while compulsory liquidations jumped 18 per cent.

Company voluntary arrangements doubled during the month to 20, the figures showed.

Fuel and energy costs have been jumping higher due to the Iran war, which has hit some sectors hard already, such as manufacturing.

But experts warned the underlying picture is worrying for businesses as cost pressures bite.

Tom Russell, president of restructuring professionals trade group R3, said: “While it may be too early to see the full impact of the worsening economic situation in the formal insolvency statistics, energy and fuel costs have risen significantly, and for many businesses this has come at the same time as customers are becoming more cautious with their spending.

“That combination is extremely challenging, particularly for businesses with limited financial headroom.”