South Africa’s corporate distress landscape is deteriorating rapidly. Statistics SA reports that 891 companies have already entered liquidation in 2026, including 233 in April alone. At the same time, business confidence has weakened amid growing economic uncertainty, rising costs and geopolitical instability.
For many companies the focus has shifted from financial pressure to survival. Many boards continue to rely on traditional responses to financial distress that are often implemented too late. By the time directors consider formal business rescue proceedings, significant value may already have been destroyed, creditors may be exposed to greater losses and jobs placed at risk. Conversely, liquidation remains the default outcome for…