Rising insolvencies: A call to action for businesses in financial distress

The latest figures from England and Wales reveal a significant increase in company insolvencies, with 2,191 businesses going bust in July—a 16% rise compared to the same period last year. Although this represents a 7% decrease from June, the numbers are still alarmingly higher than those recorded during the COVID-19 pandemic and the aftermath of the 2008/09 financial crisis.

Despite some positive economic indicators, many businesses continue to struggle, particularly in sectors like retail and hospitality, which have been hit hardest by high inflation, elevated borrowing costs, and declining consumer spending during the cost-of-living crisis. The persistence of these challenges underscores the need for companies to take proactive measures to safeguard their financial future.

How AABRS can support struggling businesses

At AABRS, we understand that navigating financial difficulties can be daunting, but early intervention is key to preventing insolvency and achieving a successful turnaround. Here’s how we can help:

1. Strategic restructuring and refinancing: As borrowing costs remain high and many companies face the need to refinance, AABRS provides expert advice on restructuring options. We help businesses explore alternative financing arrangements, negotiate with lenders, and restructure their operations to create the financial headroom needed to survive and thrive.
2. Tailored insolvency solutions: If insolvency becomes unavoidable, AABRS offers tailored solutions, including Company Voluntary Arrangements (CVAs), Creditors Voluntary Liquidations (CVL) and Administration. Our experienced practitioners guide businesses through these processes, minimizing the impact on creditors and employees while aiming to preserve as much of the business as possible.
3. Sector-specific expertise: With sectors like retail and hospitality bearing the brunt of the current economic challenges, AABRS brings sector-specific expertise to the table. We understand the unique pressures these industries face and offer specialized support to help businesses adapt and recover.
4. Early intervention and advisory services: AABRS emphasizes the importance of early intervention. By working with us at the first signs of financial distress, businesses can access expert advisory services that provide clear, actionable strategies to address their challenges before they escalate.

Conclusion

The rising number of company insolvencies is a stark reminder of the ongoing financial pressures many businesses face. However, with the right support and timely intervention, businesses can navigate these challenges successfully. AABRS stands ready to assist, offering the expertise and solutions necessary to help businesses not only survive but also position themselves for future growth. If your clients are showing signs of financial strain, now is the time to act. Let AABRS guide them through these difficult times and toward a more secure financial future.

Call Laurence on 07968 849335 or [email protected]

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Source: Rise in number of firms going bust, Insolvency Service says | Business News | Sky News