McDermott Comment | Pandemic Impact: Another 100,000 UK Businesses Tumble Into Financial Distress

Overview


Aymen Mahmoud, partner at law firm McDermott Will & Emery, said:

“Whilst financial distress on its face appeared to be at pre-2009 levels during the pandemic, the market has long anticipated a sharp increase in these situations. As government intervention is unwound and businesses adjust to new norms, we can expect continued difficulty even in the most resilient sectors and particularly among smaller or lower-margin businesses less able to sustain prolonged periods of difficulty. Conversely, these levels of distress usually create opportunistic M&A, consolidation and new and creative ways of transacting.”