Britain’s High Streets under strain as business liquidations rise
Recent news highlights that business confidence fell sharply at the end of 2025, with hiring figures falling amid rising costs and economic uncertainty. Furthermore, recent government statistics show that monthly company insolvency figures in 2025 were higher than that of 2024.
With business liquidations predicted to remain at elevated levels in 2026, the insolvency practitioners Liquidation Centre have analysed data from 5.5 millions businesses across UK town centres, to reveal where Britain’s high street crisis is most prolific. Richard Hunt, director of Liquidation Centre provides insight into the findings and reveals key advice for businesses in 2026.
UK town centres with the highest number of liquidated companies
Rank | Town centres | Number of companies within 500m radius | Liquidation rate (%) | Liquidated companies |
1 | Norwich | 6324 | 46.4% | 2933 |
2 | Manchester | 12945 | 19.6% | 2534 |
3 | Glasgow City | 14416 | 11.5% | 1655 |
4 | Leeds | 6637 | 20.2% | 1339 |
5 | City of London | 31142 | 4.5% | 1288 |
6 | Liverpool | 7032 | 15.1% | 1059 |
7 | Hackney | 107976 | 0.8% | 861 |
8 | Camden | 27497 | 2.6% | 724 |
9 | Nottingham | 4032 | 17.0% | 686 |
10 | Southend-on-Sea | 3198 | 21.3% | 680 |
*The full data set including all cities and figures is available to view here.
Norwich sees 46% companies fall into liquidation, highest in UK
Norwich ranks as the town centre with the highest number of liquidated companies among all areas analysed, with an alarming liquidation rate of 46.4%. Although Norwich leads the list in terms of total liquidations, the data indicates this was largely driven by the impact of the Covid-19 pandemic, with the sharpest increase occurring in 2021.
More recent year-on-year figures indicate a recovery for Norwich’s town centre, suggesting improving conditions for local businesses. As the city moves into 2026, this recovery highlights the importance of strong, forward-looking business strategies to support long-term resilience. Takeaway food shops and mobile food stands are among the sectors in Norwich currently seeing the highest level of liquidations.
Manchester ranks second as one in five businesses liquidated
Manchester follows with 2,534 liquidated companies, although its liquidation rate is lower than Norwich’s, due to a higher concentration of businesses within the town centre. Despite this, businesses in Manchester should still stay vigilant in 2026, as almost one in five town centre businesses have fallen into liquidation in recent years.
Glasgow City businesses facing increasing pressure in town centre
In third, Glasgow City has a total of 1,655 liquidated companies, with a liquidation rate of 11.5%. While the city’s large concentration of businesses helps to keep its overall liquidation rate comparatively lower, recent trends point to rising pressure. 2024 saw a huge 94.6% increase in the number of liquidated companies in the area, with 2025 seeing a further 37.5% jump. Businesses in Glasgow City need to be attentive to figures and act on any downfalls early to avoid another increase in 2026.
Leeds town centre sees number of liquidations double from 2023-2025
Leeds falls fourth in the ranking, with 1,339 companies falling into liquidation. Despite recording fewer liquidations than Glasgow City, Leeds has a higher liquidation rate of 20%, reflecting a smaller overall concentration of businesses within its town centre. Leeds has seen town centre liquidations more than double from 2023 to 2025.
City of London saw a 70% increase in the number of liquidations in 2025
The UK’s capital ranks fifth, as the City of London has 1,288 liquidated companies. Despite this, its liquidation rate is one of the lowest at just 4%, due to the high volume of businesses within a 500m radius. 2025 saw a 70% increase in the number of liquidations compared to that of 2024.
Liverpool town centre businesses face pressure as liquidations steadily rising
Among the town centres with the highest liquidated companies, Liverpool stands out due to a consistently rising year-on-year trend. Liquidations in the city’s town centre have increased steadily since 2020, signalling growing and sustained pressure on local businesses.
The High Street business Sectors with the most liquidations
Rank | Business Sectors | Number of Liquidations |
1 | Licensed restaurants | 986 |
2 | Management consultancy activities other than financial management | 961 |
3 | Development of building projects | 857 |
4 | Information technology consultancy activities | 609 |
5 | Other letting and operating of own or leased real estate | 424 |
Across town centres analysed, the sectors most frequently affected by insolvency include real estate, food and beverage services, takeaways, and pubs.
The data has revealed restaurants alone have seen nearly 1,000 liquidations, and 2025 statistics recorded 572 net closures in 12 months across the hospitality sector, or 11 every week. These figures underline the sustained challenges facing hospitality businesses nationwide.
Richard Hunt comments on the data alongside vital business advice for 2026: “The data highlights just how volatile recent years have been and continue to be for high street businesses, while also revealing the areas of the UK where local economies may be under the greatest strain. These pressures are often driven by a combination of reduced footfall, rising operating costs, and wider economic uncertainty.
“In 2026, businesses should prioritise disciplined cash flow monitoring, flexible overheads, and realistic growth plans. This approach allows directors to recognise when support is needed, enabling them to act early rather than waiting until problems become irreversible, significantly improving their chances of avoiding liquidation.
“Businesses need to plan for fluctuations in footfall, rising costs and weaker consumer confidence. Those that regularly review stock levels, pricing, and staffing can act early when numbers slip, and are more likely to stay profitable as a result. Too often, liquidations occur not because warning signs weren’t visible, but because difficult decisions were delayed.”