The A&M Distress Alert (ADA) reveals that financial distress is accelerating across European businesses, with 13.5% of companies now classified as distressed the highest level since 2022 and up from 8.6% in 2024.
The findings highlight how mounting macroeconomic and geopolitical pressures have eroded both earnings and balance sheet resilience throughout 2025, with all nine regions covered in the analysis reporting an increase in distressed companies.
Among major economies, Italy (18%) and France (16%) are the most affected, followed by the Nordics and Germany (c.15%), while the UK has also seen a rise to 9%, up from 7% in 2024.
Discover more regional and sector insights in the latest report.
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