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More Big Companies Set To Collapse In 2024, Industry Experts Warn

via WFMY News 2
This article was originally published at StateOfUnion.org. Publications approved for syndication have permission to republish this article, such as Microsoft News, Yahoo News, Newsbreak, UltimateNewswire and others. To learn more about syndication opportunities, visit About Us.

Insolvency experts predict that more large companies will face financial difficulties in 2024 due to high borrowing costs and pressure on consumer budgets.

Sectors like construction, business services, hospitality, and retail are expected to be the hardest hit, with high-growth areas like technology also facing turbulence.

The impact of higher interest rates and consumer financial strain is likely to lead to a significant number of insolvencies and restructurings in the coming year. (Trending: Obama Judge Issues Shock Ruling Against Democrats)

“We are expecting next year to be a big year for insolvency,” AlixPartners managing director Rob Hornby said.

“That is likely to be across the board, both in terms of geographies and sectors.”

“I personally think we are definitely seeing an element of the dotcom bubble repeating itself.

“Since before the pandemic, there was plenty of investment money around, with VCs (venture capitals) worried about missing out.”

“You ended up with some areas of tech, for example, where you had more competitors funded in one space than were ever likely to succeed sustainably in the longer term.”

“Now some of that funding is running dry, you will start to see consequences.”

“We are expecting a similar level of insolvencies overall in 2024, but we should see an increased number of larger cases,” managing director at Alvarez & Marsal Richard Fleming said.

“The impact of higher interest rates will increasingly be felt by companies who need to service their debt and by households on their mortgage payments.”

“Therefore, we’re expecting a double-whammy impact on companies across the UK, with a slowdown in consumer demand and higher borrowing costs, all putting stress on margins.”

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