Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Record number of firms in ‘significant financial distress’

3082744 bath empty shops

Almost 500,000 UK businesses are said to be in “significant” financial distress – the highest number for 16 years.

Research from corporate restructuring firm Begbies Traynor found that 494,000 businesses reported significant financial concerns at the end of December 2019, a rise of 81% since the start of 2016. Young businesses, founded after 2014, were shown to be the most vulnerable in the research.

In the fourth quarter of 2019 there was an 2% year on year increase in retail businesses reporting financial distress – totalling 31,615.

Online retailers are also facing troubling times, with an 8% year on year increase to 9,117 online businesses now in significant distress.

Julie Palmer, partner at Begbies Traynor, noted that the figures reflect a shifting consumer world. “The landscape of UK business is slowly changing. In order to capture the attention of consumers, businesses need to demonstrate that they not only have a compelling product or service at the right price, but also one that has strong environmental credentials to boot.”

She continued: “The modern consumer in the UK is increasingly being motivated by impact on the planet, and so the appeal of fast-fashion, like the Boohoo and Primark models could fall from favour in 2020. The key for businesses will be to keep up with this trend and understand the modern demands of the consumer.”

Tags

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.