7 South African businesses closed every day this year
· The South African
South African businesses face strong headwinds: tariffs, soaring fuel costs, an indebted consumer base, and declining GDP growth. The result? Companies are closing down.
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Business Liquidations Increase Steadily
According to Statistics South Africa (Stats SA), June had the second-highest number of liquidations. In 30 days, 245 businesses were liquidated; 31 fewer than March, when 276 companies shut down.
The financing, insurance, real estate, and business services sector was most affected. Forty companies closed in this industry. Trade, catering, and accommodation came in second, with 25 companies closing.
Eight companies were closed in the community, social, and personal services industry and four in construction.
In the six months ending in June, a total of 1 361 businesses were liquidated. This is 80% more than the 753 business closures over the same six-month period in 2025.
An average of eight companies closed every day in June, above the year’s average of seven a day.
South African businesses are closing operations
The liquidations underline the economic impact of consumers losing spending power. The loss in spending power puts private-sector revenues under pressure. Typically, retailers are most affected, but other industries aren’t unharmed.
The United States’ tariffs have worsened conditions.
- Pick n Pay closed 56 locations nationwide. The restructure comes as the retailer struggles with declining sales.
- Premier Foods announced the closure of its R1 billion Tulbagh factory. They suggested this was the result of the United States tariff. International revenue had dropped 7.9% in the year ending September 2025, according to Business Tech.
- De Beers announced the temporary closure of its Venetia mine in Kimberley. The company blamed changing consumer spending habits for the two-year break.
Companies pursuing business rescue to stay afloat
Beyond the headline-grabbing closures is a story of businesses seeking any means to stay afloat. Business rescue has become the means.
Earlier in July, Rentoza, a popular tech rental company, announced it would enter business rescue. The company appointed Mputi Moalusi as its senior business rescue practitioner.
Rentoza isn’t alone.
Multiple South African businesses have entered business rescue. These include Ekapa Minerals, Petra Diamonds’ Finsch Mine, Tongaat Hulett, and a string of pharmaceutical companies providing antiretroviral (ARVs) to the Department of Health.
Business rescue allows companies to rehabilitate their finances and avoid liquidation. Companies can enter it voluntarily when they are unable to meet their financial obligations.
However, the number of companies entering business rescue reveals how South African businesses are struggling. Without the intervention, these companies could have become a liquidation statistic.