UK railway company collapses into liquidation – founded in 2017

A railway company in Lancashire which was founded in 2017 has been placed into a creditors’ voluntary liquidation. Frost Rail Services built overground and underground railways.

Joint liquidators were appointed to wind up the business, which had offices in Nelson, on May 20. The company directors requested the creditors’ voluntary liquidation (CVL) through members. The company employed fewer than 10 people, according to the Mirror.

Christopher Lawton and Paul George of Business Helpline Group Limited were appointed joint liquidators of the firm.

Business Helpline Group (BHG) reported earlier this week that April saw a “modest” uptick in registered company insolvencies.

In England and Wales, 2,085 businesses faced severe financial distress last month, a 2% increase on March, according to BHG.

Insolvency levels continued to be at elevated levels with businesses struggling with cash flow, arrears with HM Revenue & Customs and increasing operating costs, according to BHG.

The company said the number of administrations was “unusually high” as about 200 connected real estate firms entered administration between March and April.

Construction, manufacturing, admin, wholesale and retail sectors saw the highest insolvency volumes in the year to March.

The majority, 16%, were in construction, with BHG noting that in general “the environment remains difficult” for businesses.

It emerged earlier this month that the number of people going financially insolvent across England and Wales jumped by 7% annually in April.

Insolvency Service figures show some 10,920 people entered insolvency in April 2026, which was 7% higher than in April 2025, but 10% lower than in March this year.

The personal insolvency total for April this year was made up of 701 bankruptcies, 4,033 debt relief orders (DROs) and 6,186 individual voluntary arrangements (IVAs).

Sebrina McCullough, Director of External Relations at debt advice provider Money Wellness, said the figures should ring alarm bells.

She added: “While insolvencies fell slightly compared to March, the overall trend shows more people are falling into serious financial difficulty than this time last year, and we fear this could be just the beginning.”

Giuseppe Parla, Restructuring and Insolvency Director at Menzies LLP, said tensions in the Middle East were compounding issues for businesses, “driving inflation and disruptions across supply chains, energy and fuel prices”.