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UK Corporate Distress Jumps 37% in Second Quarter as Prices Rise

Closed businesses in Weston-super-Mare, UK. 

Closed businesses in Weston-super-Mare, UK. 

Photographer: Tom Skipp/Bloomberg

The number of UK companies at risk of collapse rose by more than a third in the second quarter as surging inflation continued to erode margins.

Almost 2,000 companies were in critical financial distressed as of the end of June, 37% more than the same period last year, according to a report from insolvency practitioners Begbies Traynor. The jump is also due to a catch-up effect after pandemic-related relief ended and courts tackled a backlog of registering claims for unpaid debts.