# Administrations rise by 41% amid surge in new year high street failures

By Todd Davison — 2026-02-17

Todd Davison, managing director at Purbeck Insurance Services, said: “A 40 per cent surge in administrations is deeply concerning — not just for the businesses involved, but for the individuals behind them.

“When a company collapses, the impact doesn’t always stop at the business itself.

“Many directors will have signed personal guarantees to secure loans, overdrafts or trade finance.

“If the business fails, those guarantees can be called in, potentially putting personal assets – including family homes and savings – at risk.

“In a tougher economic climate, lenders often rely more heavily on personal guarantees, which means more business owners are carrying significant personal exposure without always fully appreciating the consequences.

“This rise in company insolvencies is a reminder of the risks facing thousands of small business owners – but that risk can and should be managed.

“Personal guarantee insurance exists to protect directors from the worst-case scenario, helping to shield personal finances if a guarantee is enforced.”

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