Insolvency activity increases in East Midlands as businesses face ongoing financial pressures

Insolvency-related activity in the East Midlands increased by 11 per cent in the third quarter of 2026, bucking the broadly stable national trend, according to R3’s latest Business Health report.

The report, based on Creditsafe data, found there were 281 insolvency-related activities in the East Midlands in Q3 of 2026, up from 253 in the same quarter last year and 258 the previous quarter, increases of 11% and 9% respectively.

R3 Midlands chair, Monica Kapur, a solicitor and Director at Isadore Goldman, said: “The increase in insolvency-related activity in the East Midlands is concerning and highlights the ongoing financial pressures businesses are facing, ranging from higher energy and employment costs to expensive borrowing and cautious consumer demand.

“Late payments remain another pressure on cashflow, with more that 700,000 overdue invoices recorded in the East Midlands during the last quarter.”

The report also highlighted there were over 708,000 overdue invoices on the books of East Midlands businesses during the quarter, 4% higher than the same period last year and 52% up on the previous quarter.

The R3 report found that construction remained the sector with the highest level of insolvency-related activity, while wholesale and retail overtook accommodation and food services to become the second most distressed sector, recording an 8% rise in activity compared to Q2 2026.

Other sectors which saw insolvency activity increase included real estate, professional services and education.