Tailored Solutions for Clients Under Financial Distress
As proponents of the business rescue culture, Crowe wants to see your business thrive and prosper, helping you overcome financial challenges.
Crowe analyses the difficulties you have encountered and explain the options that are available and suitable for your needs.
With the aim of a positive outcome, Crowe offers a free consultation to review a company’s affairs and will provide advice to a board on what they consider to be the best option(s) for a company and its stakeholders.
Crowe will provide practical advice and help avoid the pitfalls of creating a personal liability for not acting in a company’s best interests.
November 2024:
Insolvency appointment rates back on the rise
November 2024 saw 1,966 new appointments, marking a significant 13% increase from the previous month, reversing the declining trend observed since summer. However, despite this uptick, appointments remain 13% lower than the same period last year. Year-to-date failures stand at 22,037—just over 1,000 fewer than in 2023.
One notable failure in November was Homebase. As we highlighted in July, the DIY and home improvement sector has struggled since 2020 with falling demand. Fortunately, The Range (CDS Superstores) acquired 70 of Homebase’s 119 stores, saving around 1,600 jobs. The remaining 400 staff may face a challenging job market, as many businesses, including large retailers, have publicly spoken about managing the cost rises brought in by the Budget through restricted recruitment.
The UK economy also took a hit, with GDP declining by 0.1% in October 2024, marking two consecutive months of contraction. This increases the likelihood of ending the year in a mild recession, similar to 2023.Inflation is back on the rise, with the CPI climbing to 3.2% in October, up from 2.6% in September. This suggests any further interest rate cut is unlikely in the near term and so financial pressures continue for those with debt burdens.
The GDP decline was a result of low activity across most sectors. Driven principally by bad weather and Budget concerns keeping consumers out of shops, and delayed decision-making on major projects.
