A perfect storm of factors is creating unwelcome pressure for many UK companies this year.  From the war in Ukraine to inflation, businesses face a range of challenging circumstances which may be the catalyst for some difficult decision-making in the months ahead.

Interest rates

Recent research suggests the continuing rise of interest rates is making for a bleak economic outlook for UK businesses. With many businesses currently struggling to refinance their debts at realistic rates, this is an issue which is likely to continue.


Inflation is also hitting recent record highs in the UK and is only anticipated to rise further to 11% in October. This is having an adverse effect on businesses as they face sharp rises in operating costs at a time where many consumers are looking to cut back on their spending. This is particularly prevalent in industries such as construction, where insolvencies have risen dramatically due to inflated material and energy costs.

Withdrawal of Government support

The coronavirus pandemic led to nationwide lockdowns and complete halts to many service sectors in the UK, this unprecedented event had to be met with similarly unprecedented levels of support from the Government to ensure businesses had a fighting chance of survival.

However, with the pandemic seemingly dying down and a return to a ‘business as usual’ approach, there was always a likelihood that the withdrawal of Government support would have drastic consequences for thousands of UK businesses.

These impacts are now catching up with many businesses across the country and more post-Covid insolvencies are predicted in the coming months.

How can we help?

Being a director of a company that needs support can be stressful. It is difficult to walk the tightrope of your duties as a director, whilst also trying to make the best commercial decisions for the business. However, taking advice sooner rather than later can maximise the chances of a successful outcome for you and your business.

Druces’ Corporate Restructuring Team is on stand-by to help. If you are a director of a company and have concerns, let our experienced team guide you. 

We bring together cross-disciplinary teams of experts (corporate law, finance, real estate, tax etc.) who are able to work swiftly to find solutions. Our team can advise on your legal position and provide tailored advice to directors on how best to minimise potential personal liability and achieve the best possible result.

Contact us

For more information on our Corporate Restructuring & Insolvency services, please fill in our form below or speak to:

Picture of Caroline Cropley

Caroline Cropley

Head of Corporate Restructuring

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