‘Zombie’ businesses near collapse as critical financial distress increases and gap between companies thriving or surviving widens
Just four of the 42 clubs (9.5%) in Scotland’s top four leagues are showing signs of financial distress, down by 20% year on year – however in the EFL only three of the 72 clubs (4.2%) show signs of distress, half the number 12 months earlier.
The latest - 31 October - Football Distress Survey, which has been conducted by business recovery specialist Begbies Traynor since 2012, shows that only three of the English Football League’s 72 clubs (4.2%) are facing distress, 50% lower than a year ago, and a 25% fall in the last six months.
The latest Red Flag Alert report from Begbies Traynor, which has provided a snapshot of British corporate health for almost two decades, has revealed a 78.0% year-on-year increase in ‘critical’ financial distress as higher taxes on businesses, economic uncertainty and inflation weighed on the UK economy.
Numbers of credit broker firms have fallen by more than a fifth (-20.5%) in the past year to 3,388 in Q3 2025 as businesses seek options for refinance and funding, according to data obtained from the Financial Conduct Authority (FCA) by MAF Finance Group.
Numbers of financial advisory firms and advisers have fallen significantly since the start of 2022, especially in experienced and entry-level age groups, according to data obtained by Begbies Traynor Group from the Financial Conduct Authority (FCA).
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