According to this January 2026 report from Coface, a global leading player in trade credit risk management, global business insolvencies are projected to rise by 2.8% this year, marking a period of "misleading stabilization" after years of sharp increases. While the pace of failure is decelerating, corporate fragility remains high due to persistent debt burdens and compressed margins.

The report explains that this forecast is highly sensitive to interest rates warning that a mere 25-basis point increase in borrowing costs could trigger a much steeper surge of 4-5%. Regionally, failures are expected to rise in the US +4%, France and the UK +2%, while Germany at +1% remains pressured by weak private activity. Conversely, Italy -2% and Spain -3% are predicted to see slight declines. 

Hardest-hit sectors include construction, chemicals, and textiles. The report summarises that 2026 offers a "respite rather than an improvement" with financing costs remaining the primary determiner of corporate survival.

Read the full report at Coface

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Revo Hospitality Group, Europe’s largest white-label hotel operator, has filed for insolvency under self-administration in Germany. This move affects approximately 140 companies within the group, which manages over 260 hotels across 12 countries for major brands including Marriott, Hilton, and Accor.

The crisis follows a period of significant and ambitious expansion, growing from 51 to 250 hotels since 2020, that resulted in integration issues and duplicate management structures. Rising operational costs for energy, food, and wages further strained finances when occupancy rates failed to meet 2025 projections.

Despite the filing, 125 hotels in Germany and Austria remain operational, with 5,500 jobs secured for now, with bookings through March 2026 expected to be honoured. As of January 2026, the group is seeking new international investors to restructure by summer 2026.

More at the Independent

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In January 2026, UK high street staples Claire’s and The Original Factory Shop entered administration, putting approximately 2,500 jobs and 294 stores at risk. Both retailers, owned by investment firm Modella Capital, filed notices of intention to appoint administrators following a "disastrous" Christmas trading period and an "alarming" drop in footfall.

Modella, which acquired the brands in the latter part of 2025, after previous financial struggles, blamed the collapse on a "perfect storm" of high cost inflation, weak consumer confidence, and adverse government fiscal policies. While Claire’s faced stiff competition from online specialists like Temu and Shein, The Original Factory Shop was severely impacted by supply chain issues following a transition to a new logistics provider. Administrators from Kroll and Interpath are currently seeking buyers, though industry experts warn that full liquidations remain a significant risk for both chains.

More on this story at Drapers

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Off-site modular construction specialist Merit Holdings has entered administration, and a creditors’ report reveals that its supply-chain partners are unlikely to recover the £17.4 million owed to them. Administrators from Interpath Advisory said cash-flow pressures triggered by contract disputes, project delays and an HMRC winding-up petition ultimately forced the business into insolvency. 

The Northumberland-based firm, which once targeted rapid growth, had seen turnover fall and sought emergency funding before the collapse, but that was insufficient to stabilise operations. Secured lenders such as Santander may recover some of what they are owed, but unsecured suppliers and subcontractors are “highly unlikely” to receive any repayment of their outstanding invoices.

All 284 of Merit’s staff were made redundant and a portion of assets was sold to a newly formed company, but it is unclear if that will generate further funds for creditors.

More on this story at Construction News

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