Corporate restructuring is likely to continue rising over the next two years, according to research from CSC, a leading provider of global business administration and compliance solutions. This is not surprising given the transition to a new UK government after 14 years of incumbency by the previous regime. New beginnings often sharpen the focus.
Current figures from Begbies Traynor reveal a significant number of companies in financial distress, with the numbers rising by nearly 10% over the past year to a total of 601,950. “Consumer-facing firms were hit the hardest, but distress levels increased across 20 of the 22 sectors covered,” said Ric Traynor, executive chair at Begbies Traynor, adding that the macro-economic environment remains “extremely testing” for businesses.
Further data shows that company insolvencies in England and Wales increased by 16% in June. Consequently, the Bank of England’s decision on interest rates will be closely watched.
However, insolvency does not have to signal the end of a business. Independent advice on restructuring is available. Just call or message us for a free, informal chat.