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Future of British Business

UK Is Sick Man of Europe for Company Distress Amid Market Chaos

  • Weil European distress index showed UK overtook Germany in 3Q
  • Pressure on companies comes amid rising rates, pound drop

UK companies now have the highest level of distress among corporates in major European economies, with soaring inflation, rising interest rates and a weaker pound making life harder for British businesses, according to a report.

Law firm Weil, Gotshal and Manges LLP’s index showed that distress for UK-based companies in the third quarter rose to the highest level since August 2020 and overtook Germany, which was in the top spot last quarter.