UK Corporate Distress Surges, 10% Rise in the Past Year

UK Business Turnarounds: Still a Roller‑Coaster Ride

Quick snapshot: In 2024, distress across the UK crept up almost 10% on average, totalling a whopping 60% jump since 2017. The questions now are: Why do businesses keep choking? and How can we save them before they hit the brakes?

IFT’s Silver Linings

£3.1 billion of extra shareholder value pumped straight into firms thanks to the IFT’s independent gurus.
Thanks to savvy turnarounds, 56,000 jobs were kept on the payroll—a modest lift from last year.
More than 80% of IFT members report busier plates than in 2023.
Nearly four‑fifths (78%) foresee a growth spurt in 2025.

What’s the real buzz?

Most IFT folks (61%) are laser‑focused on business transformation, helping companies pivot, adapt, and ultimately thrive. Yet despite a few bright spots, distress remains a stubborn pall, with 46% of members predicting more failures amid a debt‑heavy landscape.

Internal Roadblocks & The Human Factor

Board fatigue or bandwidth (40%) and working capital drains (37%) are the top internal villains.
When asked why companies shy away from help early on, 81% say cultural and psychological resistance to outside counsel is the main hurdle, followed by 62% who simply don’t recognise the looming trouble.

Regional and Sector Highlights

Every UK region saw more distressed firms, ranging from 7% to 17%.
Wales & Borders led the surge at 17%, trailed by the Isle of Man and the South‑West.
London surpassed the South East as the top insolvency hotspot, with 3,295 Q1‑Q3 2024.
Top distress sectors: wholesale, retail & repairs, construction, and professional/scientific/technical activities—construction outselling the rest in insolvency numbers.
Manufacturing remains the IFT’s favorite playground, followed by construction and a surprising rise in the automotive arena, jumping from ninth to third thanks to regulatory shifts.

Message from the Top Dogs

Milly Camley, CEO, The IFT: “These are the very businesses that could thrive with our deep expertise, yet many stand stiff and late. The key is to identify what you can actually influence—act fast, act smart. Turnaround pros bring immense value, as the numbers show.”

Claire Burden, Chair, The IFT: “Challenges persist—think of the automotive sector’s rapid slide. Firms must plan ahead, especially for liquidity. Catching problems early lets leaders tweak contracts, manage capital, or lean on external funding before crises hit.”