Debt storm is about to break, said recovery expert

Hundreds of companies in Milton Keynes are now classed as in ‘significant’ economic distress, according to the latest figures from a leading corporate recovery company.

The quarterly Red Flag Alert research carried out by Begbies Traynor shows that companies based in the city are facing increasing financial pressure due to interest rates, debt, subdued consumer confidence, high energy costs and wider economic uncertainty.

The findings show 358 are at risk of failure, a rise in Q3 of 19 per cent.

Julie Palmer, partner at Begbies

High interest rates head a financial reality check for companies

Traynor in Milton Keynes, said:

“This latest data highlights how the debt storm, which has been brewing for years, but had been held off by several measures to provide breathing space for companies, is likely to break.

“Businesses that had loaded up on debt at rock-bottom rates, and were only able to cling on during the pandemic thanks to government support, must now deal with a financial reality check