The latest “Red Flag Alert” report from Begbies Traynor reveals “a worrying” 50.2% surge in the number of businesses in the UK entering ‘critical’ financial distress in the final quarter of 2024. Of the twenty-two sectors covered by Red Flag Alert, twenty-one saw a noticeable increase quarter-on-quarter in the number of businesses in ‘critical’ financial distress. The growth in distress was particularly concerning in consumer-facing sectors, with Hotels and Accommodation (+83.63%), Leisure and Cultural Activities (+76.46%), General Retailers (+47.6%), and Food and drug Retailers (+37.4%) all increasing significantly. In key bellwether sectors, there has also been worrying growth in ‘critical’ financial distress, with the Construction (+58.0%) and Real Estate & Property Services (+63.4%) sectors now representing nearly 30% of all the businesses in ‘critical’ financial distress. To read Begbies Traynor’s news release, go to https://www.begbies-traynorgroup.com/news/business-health-statistics/historic-jump-in-the-number-of-firms-in-critical-financial-distress.