Businesses urged to put contingency plans in place as more than 2,000 firms go bust amid Iran war
Businesses are being urged to put contingency plans in place as another 2,000 firms went bust last month amid the economic fallout of the Iran war.
Rising energy and fuel prices, paired with weak consumer confidence, have contributed to a rise in monthly company insolvency rates.
Figures from the Insolvency Service show 2,022 registered company insolvencies across England and Wales in March, 7 per cent higher than in February, when 1,895 were forced to close.
These consisted of 299 compulsory liquidations, 1468 creditors’ voluntary liquidations, 235 administrations, and 20 company voluntary arrangements.
It marks the highest level of insolvencies since October 2025 - although lower than the 2025 monthly average - largely driven by more than 100 companies in the property sector.
Shutting up shop: More than 2,000 firms went bust in March amid the Iran war
Share this article
The Iran war has piled further pressure on businesses already battling higher tax and labour costs, at the same time that consumers are cutting back on spending amid fears of rising inflation.
‘Manufacturers, particularly those companies with energy‑intensive operations, have been hit hard by rising gas and electricity prices,’ said Tom Russell, president of insolvency specialist R3.
Last month, ceramics firm Denby Pottery called in administrators citing higher energy costs as a key factor in its decision.
It said it had faced ‘enormous financial challenges’ over the last three years, blaming reduced demand for its products, combined with ‘escalating’ employment and energy costs.
‘At this stage, businesses can no longer assume that conditions will quickly return to normal,’ said Russell. ‘Many will need to start putting contingency plans in place’.
Oliver Collinge, partner at PKF Littlejohn Advisory added: ‘Against this backdrop, it is essential for companies to remain vigilant and take proactive steps if challenges arise.’
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
