What a Truro Insolvency Expert Sees Coming for Cornwall Firms

Fewer companies went under last month. On paper that reads like a turning point. The view from a restructuring partner with an office in Truro is that the worst may not be behind us.

There were 1,868 corporate insolvencies across the UK in May 2026. That is 10.5% fewer than the 2,087 recorded in April, and 16.3% down on the 2,231 seen in May 2025.

Andy McGill, a restructuring and insolvency partner at Azets, one of the UK’s top 10 accountancy and advisory firms with offices across the South West including Truro, has been looking at what sits behind the figures.

Why the numbers have dropped

The fall, Andy said, is tied to a shift in the type of insolvencies being recorded.

“The monthly and annual fall in corporate insolvencies reflects the change in Compulsory Liquidation numbers, which are down from a 10-year high last month, and the change in Creditors’ Voluntary Liquidation numbers from May last year, a month in which many employers were entering a CVL in response to the increased National Insurance costs that were introduced in April.”

In other words, last May was an unusually busy month for one type of closure, which makes this year’s comparison look healthier than the underlying picture.

He was blunt about what has not changed. “Directors running out of fight, firepower and finance is still a problem, and creditors remain willing to turn to the courts to recover monies owed.”

The pressures piling up

Andy pointed to a stack of issues bearing down on businesses at once. Geopolitical instability. Rising costs. Political uncertainty. A lack of affordable finance. Creditors chasing overdue debts to cover their own bills.

The war in Iran came up repeatedly. He said its economic ripple effect “continues to take its toll,” pushing up operating costs and forcing firms to rethink investment, recruitment, pricing and suppliers.

“The signing of the initial deal is positive and may allay fears that this would become a permacrisis,” he said. But he warned the agreement looks high-level and fragile, with complex and protracted negotiations still to come.

Closer to home, he flagged speculation about the prime minister’s future as another drag on confidence. With a possible leadership contest looming, he said firms in some sectors may hold off on investing, expanding or borrowing.

Then there are the bills. Business rates have gone up with the new financial year, the cost of hiring and keeping staff has climbed, and energy prices are set to rise again. Andy described firms as “sandwiched” between higher energy costs and customers who are cutting back.

The sectors feeling it most

Hospitality, retail and construction are all under strain.

The restaurant trade is being squeezed by higher costs and cautious diners, with several household names recently entering restructuring or insolvency. Retailers are seeing footfall and sales rise but are still being “crushed by costs,” Andy said. He pointed to news of TG Jones exploring a restructuring plan as a sign that even long-standing high street names are exposed.

Construction is wrestling with rising labour and material costs, while late payment makes cashflow harder to control.

What he wants worried owners to do

His advice to any business owner losing sleep is simple.

“It’s incredibly hard to voice your concerns about your finances but the earlier you do, the more potential solutions you have open to you and the more time you have to consider how you move forward.”