The IFT Quarterly Update Q4 2024: spike in retail sector turnaround activity and continuing pressures for construction sector

The IFT’s quarterly snapshot for Q4 2024 showed a sharper increase in turnaround and restructuring activity in the quarter, with 83% of respondents from IFT partner firms seeing an increase in activity and the remainder about the same level. In sector terms, IFT partners saw the retail sector as the busiest sector in Q4, followed by construction, as well as increases in activity for the automotive and manufacturing sectors. A number of factors were seen as driving business distress in Q4 2024, with an even split between inflationary pressures, the cost of servicing debt and the withdrawal of shareholder support/funding as the most common factor.

Looking at the broader economic context, according to FRP data, Q4 2024 saw a slight decrease in the number of insolvencies. Looking further back, the figure for Q4 2024 was nearly 10% lower than the Q4 2023 figure. However, the data showed a slight increase in numbers of businesses in distress, with the construction and retail and repairs sectors both featuring in the top three distressed sectors.  Overall, compared to Q4 2023, the numbers of businesses in distress in Q4 2024 were 6% higher, raising concerns about whether 2025 may see increasing insolvencies.

IFT partner firms indicated concerns from businesses both around the impact of upcoming government policy changes on costs as well as geopolitical issues, such as tariffs.

You can read the full update here.