A quieter month for business closures but challenges remain
Across 2025, liquidations have shown modest ups and downs, but the trade, catering and accommodation sector consistently leads the way in business exits.
Image: Freepik
South Africa saw a slight decline in company and close corporation liquidations in November 2025, according to Statistics South Africa. A total of 126 businesses were wound up, down from 128 in November 2024.
The drop came as fewer companies went under, though close corporations recorded a small increase.
Over the three months ending in November, liquidations were 9.5% lower than in the same period in 2024.
Year-to-date as of the end of November, 1,551 businesses have been liquidated – 1.8% fewer than the same period last year.
The sectors most affected continue to be trade, catering and accommodation, followed by financing, insurance, real estate and business services. Manufacturing, agriculture, and mining saw comparatively few wind-ups.
Month-on-month, November’s total was slightly below October’s 130 liquidations, continuing a trend of minor fluctuations over the second half of 2025.
Close corporations remain concentrated in services, while company liquidations are spread more evenly across sectors.
Across 2025, liquidations have shown modest ups and downs, but the trade, catering and accommodation sector consistently leads the way in business exits, highlighting persistent challenges in those industries.
In 2008, changes to the Companies Act enabled businesses to enter Business Rescue instead of going bankrupt, as was the case with Tongaat Hullett.
Under this amendment, companies are rehabilitated, management taken over by business rescue practitioners, any monetary claims against companies are suspended, and a plan to turn the entity around is developed, according to an explanatory note on the process provided by Werksmans Attorneys.
Companies can apply for business rescue if they can’t pay their debts and it seems likely that they will close their doors in the next six months.
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