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Business distress showing signs of slowing in region
October 31, 2025
|The Journal
BUSINESS distress in the North East is showing signs of slowing despite seeing another rise in the number of firms tackling financial struggles, new data suggests.
Almost 12,700 businesses in the region experienced early or 'significant' financial distress in the third quarter of the year, an increase of 8.3% on the previous quarter and 8.9% on the same time in 2024, according to the latest Red Flag Alert research from business rescue and recovery specialist Begbies Traynor.
The Red Flag Alert - which provides a quarterly snapshot of the UK's corporate health - suggests that while the tide of early business distress is continuing to rise, the new figures mark a slowing of the rate at which the number of firms in financial difficulty is growing, with levels in the North East slightly lower than those across the UK as a whole.
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