There has been a record rise in UK businesses in severe financial distress as companies find it “almost impossible to navigate the challenges they face”, according to an insolvency specialist.
The number of businesses showing signs of critical stress rose by 50.2 per cent quarter-on-quarter to 46,853 in the final three months of 2024, Begbies Traynor said.
Its “red flag” alerts showed that construction companies were facingthe most significant challenges, with 6,830 businesses showing signs of critical distress.
Consumer sectors also reported significant increases in distress, with a jump of 76 per cent in financial distress for the leisure sector and 48 per cent in general retailing. There were a number of high-profile collapses…
