INSOLVENCY figures fell in May, but businesses across Wales remain under serious financial pressure, according to restructuring specialists.

Official figures show there were 1,868 corporate insolvencies in May 2026, down 10.5% from April and 16.3% lower than in May last year.

Andy McGill, restructuring and insolvency partner at Azets, which has offices in Cardiff, Swansea and St Asaph, said the fall was welcome but should not be mistaken for a sign that firms are out of difficulty.

He said: “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 — and neither of these are going to change in the short term.

“The reality is that despite the fall in insolvencies compared to last month and last May, numbers are still high and businesses are still struggling, with many facing an uncertain future.”

Mr McGill said firms were being hit by a combination of geopolitical uncertainty, rising costs, political instability, a lack of affordable finance and creditors chasing overdue debts.

He added: “Unless the climate becomes easier and some way is found of lightening the cost load on businesses, it’s likely demand for advice and support will remain high in the coming weeks and months.”

Cost pressures continue

BUSINESSES are also facing rising employment costs, higher business rates and renewed pressure from energy bills.

Mr McGill said many firms were being “sandwiched” between their own higher costs and customers cutting back on spending.

He said the hospitality, retail and construction sectors remained among the hardest hit.

He added: “The fact that several household names have entered restructuring or insolvency processes recently shows the strain on the restaurant sector is becoming unbearable as the double blow of increased expenses and cautious consumers continues to affect it.

“Despite a rise in footfall and sales, retailers continue to be crushed by costs.”

He also pointed to the planned restructuring of TG Jones as evidence that even long-established high street names were not immune from financial distress.

Construction firms under strain

THE construction industry continues to face pressure from rising labour costs, higher material prices and late payment.

Mr McGill said tight margins and cashflow difficulties were pushing more firms towards financial distress.

He said: “Our advice to anyone who is worried about their business is to pick up the phone and speak to an adviser.

“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.”

A CALL to convert a former Pembrokeshire farmhouse and guesthouse into housing units has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Dan Hildebrand, through agent GMW Design, sought approval for the subdivision of Torbant Farmhouse, Croesgoch, near Haverfordwest, to form four residential units.

A supporting statement through Johnston Planning on behalf of the applicant and agent said: “The property has historically been run as a successful guesthouse for a number of years but has recently come under new ownership. The new owner wishes to maximise the potential of the existing residential floor space through the subdivision of this generous property into four units.”

It added: “Whilst the intention is to utilise the subdivided property for residential purposes due regard is given to the 2022 changes to the use class order which in effect created new residential classes for new development in an effort to control unrestricted holiday uses in sensitive locations.

“As such a ‘free use’ is sought within use classes C3 (use as a sole/main residence), C5 (use as otherwise as a sole/main residence) and C6 (use as a commercial short term let).

“These proposed uses, which are considered to be reasonable and to be fully compliant with current planning policy (especially when one has regard to the existing use) will provide the owner with flexibility in terms of proposed occupation. Ensuring full and meaningful use of the property in the future.”

It said the property was once part of Torbant Farm, now been broken up into a number of separate properties, including Torbant Caravan Park immediately to the north.

It added the works to the property “are minimal and will have a negligible impact externally,” adding: “Internally whilst the layout will alter marginally no structural works to the property are proposed.

“In character terms therefore, there will be no discernible physical impact either to the dwelling itself or to the wider locality.”

Six objections to the scheme were received, raising concerns including harm to visual and residential amenity, ecological impact, infrastructure constraints, and claimed inaccuracies in the submitted application, as well as the application overstating available parking space “which would encroach onto shared access areas, causing obstruction and conflict between users”.

An officer report recommending approval said the scheme was amended to move car parking provision within land under the applicant’s control.

It concluded the scheme represented “an efficient use of the existing building stock,” and it “would not result in any external alterations to the host building and would not give rise to unacceptable harm to the character or appearance of the building or its wider rural setting nor the residential amenities of neighbouring occupiers”.

The application was conditionally approved by county planners.

PLANS to convert a former Pembrokeshire town centre social club into council owned social housing have been given the go-ahead.

In an application to Pembrokeshire County Council, the authority itself, through agent KEW Planning, sought a change of use of the former Manchester Club social club, Fulke Street, Milford Haven to seven social rented residential units.

The Manchester Club public house/social club closed in March 2024 due to the cost of operations rising to be more than the monetary value that the club delivered, remaining vacant since this time, and was marketed for sale before an offer from the council was accepted.

The council scheme will provide five one-bed flats, one two-bed, and one studio flat; an amended scheme from discarded initial options which included one for 12 apartments and two studio flats. The scheme revised to restrict proposed alterations to the existing building to a minimum.

The proposal includes the demolition of the single storey garage to the front, and a single-storey extension at the rear, which will allow a communal amenity area.

A supporting statement said: “The vision for this project is to provide social housing to address housing stock shortages and to give a new life to a vacant building in a central location of the town. The property will be rented to mixed aged tenants, with PCC as the corporate landlord.”

An officer report recommending approval said the site had been marketed since 2024 at £170,000, with a £150,000 offer made but was unable to be proceeded with, the price later reduced to £150,000, three offers later received including £140,000 from the council, which was accepted in April 2025.

“For the two years that this property has been marketed the market response to the property has been limited with no viable interest in retaining the building for its existing community facility use,” the report said.

It concluded: “The loss of the former community facility has been robustly justified in accordance [with planning policy], and the scheme would deliver social and economic benefits through the provision of additional housing and the re-use of a vacant building.

“The proposal would enhance the visual appearance of the site, provide an acceptable standard of residential amenity for future occupiers without undue harm to neighbouring properties, and would not give rise to unacceptable impacts in respect of highway safety, drainage, biodiversity or the historic environment.”

The application was conditionally approved.