New analysis from national law firm Shakespeare Martineau reveals a 61 per cent increase from the 56 administrations recorded during the same period in 2025.
Analysis of data from The Gazette Official Public Record showed that the West Midlands was the UK’s fourth worst-hit region for administrations during the first half of 2026, behind Greater London (479), the North West (158) and the South East (102).
Justine Ball, joint lead of Shakespeare Martineau's Birmingham office, said: “We’re operating in an incredibly challenging market at the moment, particularly across the real estate sector, with businesses in the West Midlands continuing to navigate both economic uncertainty at home and wider geopolitical pressures.
“The way people use our inner city and urban areas has changed significantly. Hybrid working has altered demand for office space, which, in turn, affects everything from car parks and retail to hospitality and leisure.
“Many businesses are still trying to find the right balance while adapting to those changing patterns and that period of transition is undoubtedly contributing to higher administration levels particularly in the real estate and leisure industries.
“There is an opportunity for businesses and local authorities to work together to make city centres more attractive places to work, visit and spend time. Investment in vibrant public spaces, events and communities will be an important part of supporting long-term recovery.”
The figures form part of a wider national picture, which saw UK administrations reach their highest level since 2010.
Across the country, 1,159 companies entered administration in the first six months of 2026 – a 48 per cent increase from the 783 recorded during the same period in 2025. The total also marks the first time administration volumes have exceeded pre-pandemic levels (940 in 2019).
Nationally, the real estate sector experienced the most significant increase, with administrations rising more than four-fold from 78 in the first half of 2025 to 336 in 2026.
Retail remained under considerable pressure despite a slight year-on-year improvement, recording 142 administrations compared to 153 in 2025. Manufacturing (102, up from 77), hospitality (99, up from 80) and construction (88, up from 79) completed the five worst-affected sectors.
The hospitality industry came under notable pressure in January, with 32 administrations recorded during the month, 22 of which related to pubs and bars.
Elsewhere, the financial sector recorded a sharp increase from 47 to 85, while the arts and entertainment industry almost doubled from 18 to 34.
The figures include several high-profile corporate failures – including car parking firm NCP – and reflect the administration of hundreds of special purpose property companies in Greater London linked to the collapse of bridging lender Market Financial Solutions.
Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “This analysis represents a significant and worrying shift. For the first time since the pandemic, business failures have not only risen sharply but have surpassed pre-Covid levels – highlighting just how difficult the current trading environment has become.
“Many businesses have spent the past few years absorbing higher borrowing costs, inflationary pressures and increased operating expenses.
“While inflation has eased from its peak, the cumulative impact of those challenges, combined with subdued economic growth and cautious consumer spending, is now feeding through into administration numbers.
“The sheer scale of the increase suggests many businesses have simply run out of options. Companies that have survived several years of sustained pressure are finally reaching a tipping point.”
Despite some sectors and regions proving more resilient than others, Andy warned businesses to act early if they encounter financial distress.
He said: “Whether or not individual large failings have influenced the headline figures, there is no escaping the fact that the business environment remains incredibly challenging. Cost pressures remain high, refinancing is becoming increasingly difficult for some businesses and confidence continues to be fragile.
“Our advice remains unchanged – seek professional advice early. Directors who act at the first signs of financial difficulty have far more options available to restructure, protect value and, where possible, rescue the business. Waiting until cashflow becomes critical can significantly reduce those options.”
