Cover story
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“ It has never been more important to understand the strength of the companies within your supply chain and to pinpoint any potential distress ”
£ 4.5bn
Worse is yet to come There is no doubt the economy remains in crisis , but data from corporate distress data analyst Red Flag Alert suggests this is something of a phony war and there is far worse to come . This year has only seen 4,059 insolvencies to the end of August , 27 per cent less than the same period in 2019 . The government schemes designed to shore up the economy are protecting some businesses that might otherwise fail . But those that have already gone into administration have left debts of almost £ 800m , which will have grave consequences for their supply chains . “ Unfortunately , the current outlook is that we expect high levels of business failures and payment defaults during the next six months , which will create more stress in these key sectors ,” says Mark Halstead , a partner at Red Flag Alert . “ It has never been more important to understand the strength of the companies within your supply chain and to pinpoint any potential distress .”
– estimated rent for UK commercial property that will go unpaid in 2020
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