Corporate distress climbs amid ‘mounting pressures’

Analysis by restructuring firm Kroll has identified a significant increase in corporate distress, with a 30.5% rise in companies filing for administration last month, from 108 last year to 141. The construction and manufacturing sectors were particularly affected, each seeing 18 administrations. Benjamin Wiles, head of UK restructuring at Kroll, noted: “There are mounting pressures on all businesses,” highlighting the challenges posed by rising National Insurance contributions and uncertainty around trade tariffs. While 90% of larger businesses feel prepared to tackle these challenges, only 74% of smaller firms share this confidence, with 27% feeling less prepared than the previous year. Sarah Rayment, managing director at Kroll, said feedback from small businesses was “concerning,” commenting: “While it’s encouraging to see that some businesses are planning proactively, it is unsurprising to see that smaller companies face steeper hurdles with fewer resources and capital reserves.”