There has been a record jump in the number of UK businesses in critical financial distress, according to insolvency specialists.

Businesses in the most distress include those in hospitality, leisure and retail, but the construction industry is also facing challenges.

Insolvency experts Begbies Traynor said a company can be considered to be in critical financial distress if it has an outstanding county court judgment of more than £5,000 or faces a winding up petition.

“The last two years have been really quite stressful trying to run a business,” said Helen Gorman, who decided to close her café bar TwentySix in Cardiff this month due to rising costs.

“The industry as a whole is horrific and some of these challenges I don’t think any…

Debt is a reality that many Americans face and recent data paints a sobering picture. As of late 2024, consumer debt had reached an all-time high, with credit card balances accounting for $1.17 trillion. And, nearly half of all credit card users are carrying balances from month to month, incurring steep interest rates that compound the financial strain. Meanwhile, inflation has shown signs of resurgence, driving up costs for essentials like groceries and utilities. These trends create a…

The number of people going financially insolvent in England and Wales last year was 14% higher than in 2023, driven by debt relief orders (DROs) jumping to a record high, according to the Insolvency Service.

Some 117,947 personal insolvencies were registered in 2024, 14% higher than the 103,434 recorded in 2023.

Within the total, there were 43,249 DROs – the highest annual number on record and 36% higher than in 2023.

This followed the removal of a £90 administration fee to obtain a DRO from April 2024 and the expansion of eligibility criteria in June last year, with the debt threshold being increased from £30,000 to £50,000.

In 2024, 57% of individual insolvencies were individual voluntary arrangements (IVAs), 37% were DROs,…

Angell, a French smart electric bike startup, has announced in an email to customers that the company is declaring insolvency and approaching a court to ask for judicial liquidation.

“It’s over for Angell,” said company co-founder and CEO Marc Simoncini on Instagram. (He also happens to be a judge on the French version of “Shark Tank.”) “A hardware problem has put an end to the adventure, despite all our efforts and the incredible work of all our employees.”

Originally founded in 2019, Angell set out to create an electric bike with several smart and connected features. Its original bike packed a small color touch screen in the middle of the handlebar to display relevant information and give turn-by-turn directions. It could…

Eko Damara, a first lieutenant with the Indonesian Navy, reportedly…

The Star hospitality operations in Queensland and NSW – including its hotel, restaurant and bars tenants – face an uncertain future if casino operator enters voluntary administration or has its administration enforced over poor financial results.

“All bets are off,” said one hospitality operator insider if its landlord, The Star Sydney, goes under.

“It’s not pretty. Footfall is at record lows. It’s not good at all and morale is at its lowest as well,” the operator added. The combined forces of a new registered gaming card, capping punters at $5000, will push gamblers to…

It comes after its UK parent company was placed into administration in February last year, with its international assets largely sold – but the sale excluded the New Zealand business.

Administrators Daniel Stoneman and Neale Jackson of Calibre Partners said a buyer had not been found for the New Zealand business, leading to the appointment of administrators.

“We are working closely with the management team to develop a strategy to sell all stock and begin to wind down the business,” they said.

The Body Shop New Zealand has 16 stores with about 70 permanent staff. It had three outlets in Christchurch – Westfield Riccarton, Northlands mall and…

In the lead-up to a federal election, bipartisan support to rescue the key regional airline Rex may not surprise voters.

But what happens next could set the stage for the federal government to own an airline for the first time in three decades, after it privatised Qantas through a public share sale in 1995.

This week, the federal government announced it was acquiring $50 million in debt from Rex Airlines’ largest secured creditor PAG — the company that invested in Rex so it could launch capital city flights, which ultimately led to its downfall.

Rex went into voluntary administration last year, and the government’s move gives it significant influence over the airline’s future.

Akron will no longer use COVID-19 relief dollars to help cancel residents’ medical debt. The debt relief program will still exist – but with a different funding source, according to a Friday news release.

In 2023, city leaders approved using $500,000 of the city’s American Rescue Plan Act allocation to work with a nonprofit, Undue Medical Debt, which connects directly with local hospitals to relieve medical debt.

However, the organization needs more time, officials said.

ARPA dollars have a time limit – they must be spent by the end of 2026.

City officials have decided to instead use money from the city’s general fund for the debt relief program, Mayor Shammas Malik said in the release.

“Our…