The Institute for Turnaround (IFT) is urging businesses in distress to avoid unnecessary insolvencies by exploring turnaround options that could protect people’s jobs and livelihoods, ensure continuity of service to customers, support suppliers and boost UK plc.
In its new report, Unlocking Jobs, Saving Value, The IFT estimates that in 2019 its members and partners – a group of highly-experienced business turnaround experts – saved more than 200,000 jobs and protected £2 billion in enterprise value. The report highlights the profound social as well as financial impact of preventing business failure, with successful turnaround interventions last year helping to preserve jobs and livelihoods, uphold local industries, protect economic value and strengthen public service organisations.
With a sharp increase in distressed businesses reported in the quarter to 31st March 2020 as a result of Covid-19, IFT members expect to see higher demand for turnaround services during 2020. However, the organisation has warned that a lack of awareness of this essential business discipline may mean many businesses in the UK are at risk of rushing into insolvency without first considering immediate professional intervention which could resuscitate their business.
Steve Swayne, Chair of The Institute for Turnaround said:
“Not every company can or should be turned around. But there are also many stressed businesses that, even in these hugely complex and challenging times, will be able to reverse their decline and prosper. Government measures have provided much needed breathing space and we are urging businesses in distress seek swift early intervention from experts who may enable them to survive and thrive as a business, helping to protect suppliers, employees and customers.”
“The UK has a skilled but little-known turnaround community committed to business rescue. The skills of turnaround professionals in providing immediate viability and confidence to businesses and stakeholders, with the space to recover and where necessary build a long-term plan in response, are critical to avoiding unnecessary insolvencies during and after the Covid-19 crisis.”