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…

At the moment, there are 3,534 claims filed against KTM AG. These are divided into 2,347 claims filed by employees and 1,187 claims filed by other creditors.

In total, the claims amount to 2.18 billion euro, out of which 1.66 billion euro has been recognised so far. 

Further, KTM Components GmbH has received 739 claims totalling almost 81 million euro, out of which claims worth 48.8 million euro have been recognised.

At KTM…

In its latest Global Insolvency Report, Allianz Trade reveals a more severe outlook for the global business landscape, with insolvencies projected to climb by +11% in 2024 – an even steeper rise than previously anticipated. The report highlights key trends and risks for businesses worldwide, as the global economy grapples with sluggish demand, ongoing geopolitical tensions, and uneven financing conditions.

US surge is noteworthy, but not unprecedented

The US is set to continue its sharp rebound in business insolvencies in 2024, with a projected increase of +31%, building on the +40% surge seen in 2023. This acceleration reflects a normalization phase as companies exhaust the buffers accumulated during the…

Texas based electric vehicle (EV) start-up Canoo announced last week that it was filing for bankruptcy and would immediately cease operations.

Founded in 2017 as Evelozcity, the company was renamed in 2019 with a goal of “reinventing the automotive landscape with bold innovations in design, pioneering technologies, and a unique business model that spans all owners in the full lifecycle of the electric vehicle”.

Canoo had developed an electric ute and van and successfully delivered models to names such as NASA, the US Department of Defence, and the US Postal Service.

Only one vehicle was shipped to the public, however, the Canoo Lifestyle Vehicle, with deliveries beginning towards the end of 2023. The five- or seven-seat…

“The industry as a whole is horrific and some of these challenges I don’t think any government really understands, particularly around VAT rates that we pay. The costs just keep going up, be that supplier costs, be that energy costs,” she told the BBC.

The struggles for businesses comes at the same time as a drop in consumer confidence, with more people concerned over the UK’s financial prospects, as well as their own.

While there is often a jump at the end of the year of companies in critical financial distress, the report found a sharp increase of 50% from September to December last year, taking the number of businesses in this category to 46,583. The record jump, since Begbies Traynor started collecting such data in 2004, was up from…

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Thames Water has warned the government that it faces bankruptcy if it is not allowed to raise bills by more than agreed with regulator Ofwat. The UK’s biggest water company will put it’s prices up by 35 per cent over the next five years, down from the 53 per cent that was requested.

Bosses have argued that the additional funding is needed to pay for new infrastructure investments over the next five years, but Ofwat has declined to change its decision. Thames Water now has until 18 February to decide whether to appeal to the Competition and Markets…

A bipartisan group of state legislators have re-introduced a proposal to create a medical debt relief program that could erase hundreds of millions of dollars in unpaid medical bills. But if a similar program in the City of Pittsburgh is any indication, it’s not guaranteed that Pittsburgh-area residents would benefit.

Rep. Arvind Venkat (D-North Hills) is the prime sponsor of the Pennsylvania Medical Debt Relief Program. As a Pittsburgh-based emergency room physician, Venkat said mounting medical debt is more than just a financial nightmare, it also “keeps patients from seeking necessary care.”

“I’ve personally seen patients who’ve gotten very sick or even died as a result of delaying care…

Thomas C. Goldstein, a highly respected Supreme Court lawyer and co-founder of the popular legal blog SCOTUSblog, has been indicted on federal tax evasion charges in Maryland. Goldstein, who is known for his extensive experience before the U.S. Supreme Court, is accused of evading taxes by failing to report substantial gambling winnings and using his law firm’s funds to pay off personal debts tied to high-stakes poker games. The charges, filed on Thursday, highlight a multi-year scheme from 2016 to 2022 in which Goldstein allegedly diverted more than $5 million from his law firm to cover personal losses, all while underreporting his gambling income to the IRS.

Poker winnings and the path to alleged tax evasion: