Businesses in financial distress

Businesses in financial distress face significant challenges in meeting their financial obligations, such as paying suppliers, employees, and lenders. This situation often results from declining sales, high debt levels, or cash flow problems. When financial distress worsens, a company may struggle to operate normally, and may need to consider restructuring, seeking bankruptcy protection, or selling assets. The goal is to stabilize the business, recover financial health, and avoid failure. It’s a critical phase where careful management, strategic decision-making, and sometimes external help are essential to navigate the difficulties and restore viability.