A record number of companies are in “critical financial distress according to latest Red Flag Alert data, which shows that there are 49,309 firms on the brink of insolvency.
The figures mark a 21.4% increase from a year ago. All 22 sectors surveyed reported a rise in ‘critical’ financial distress over the previous 12 months. Those experiencing ‘significant’ financial distress rose by almost 11% year-on-year to 666,876 businesses. On a quarter-by-quarter basis, this marked a 15% increase on Q1.
This is a stark reminder of just how tough the UK trading environment has become. With over 49,000 firms now in ‘critical’ financial distress, a 21.4% year-on-year increase, it’s clear that many businesses are…