
Recent reports show a 50.2% surge in UK businesses facing critical financial distress, with 46,853 companies struggling in the last quarter of 2024, according to Begbies Traynor.
Key factors driving this rise:
- Weak consumer confidence
- Higher borrowing costs
- Increased national insurance contributions
- Rising national minimum wage
Industries most affected appear to be construction and retail and leisure which is struggling under the weight of recent high-profile collapses, including Homebase, Carpetright, and The Body Shop.
But it’s not just businesses feeling the pressure — personal insolvencies are up 14%, indicating a ripple effect across the economy.
How can businesses navigate these challenges? The key is early intervention. Engaging insolvency professionals at the first signs of trouble can unlock solutions like:
- Company Voluntary Arrangements (CVAs) – Restructure debts and stay operational.
- Administration – Protect your business while finding a path forward.
- Negotiations with creditors – Manage repayment plans to ease financial strain.
At Brecher, we provide tailored insolvency solutions to help businesses regain control and plan for the future. Whether it’s creditor negotiations, or formal insolvency procedures, our experts are here to guide you every step of the way.
This update is for general purpose and guidance only and does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered. No part of this update may be used, reproduced, stored or transmitted in any form, or by any means without the prior permission of Brecher LLP.