Corporate distress across the UK continues to rise, with the energy sector among the worst affected, according to the Institute for Turnaround’s sixth Societal Impact report.
The analysis shows distress up by more than 20% in both energy and real estate between 2024 and 2025.
Despite insolvencies falling compared with the previous two years, levels remain higher than in 2021 and 2022.
The report finds that distressed business numbers have barely shifted since the 10% increase recorded last year.
IFT members cite inflationary pressures, management fatigue and political uncertainty as major challenges. Over the next six months, they expect conditions to worsen as businesses struggle to adapt operating models.
The report highlights the significant positive impact delivered by turnaround professionals during 2025.
Members generated £2.8bn in added shareholder value and secured more than £2bn in new funding for turnaround projects. They also safeguarded 59,562 jobs, slightly more than the previous year.
Every region experienced an increase in distressed businesses, with Wales seeing the sharpest rise at 10%. London followed at 9%, while the North East and Yorkshire showed the most resilience.
Demand for turnaround support is expected to climb, with 60% of IFT Independent Members anticipating a busier year ahead. Three-quarters expect demand to rise further in 2026.
Governance and organisational changes dominated recent turnaround assignments. Members were most often required to restructure organisations, reduce costs and strengthen cashflow forecasting. Many were also focused on supporting boards with strategic change.
However, cultural and psychological barriers remain a major obstacle to early intervention. Almost four-fifths of members say these factors prevent businesses from seeking help, while many firms fail to recognise problems until it is too late.
Milly Camley, CEO of The IFT, said: “The stats speak for themselves, but distress remains eye-wateringly high.”
Energy sector distress jumps 20% appeared first on Energy Live News.