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The number of UK businesses in critical financial distress has risen by 78% in the third quarter to 55,530, according to a report from insolvency practitioner Begbies Traynor. Its latest Red Flag Alert report showed that 21 of 22 sectors analysed showed an increase in critical financial distress of more than 40% on a year earlier. Julie Palmer, a partner at Begbies Traynor, said: "Unfortunately for UK businesses, inflation is going nowhere, putting further pressure on companies at a time when wage, tax, and financing costs are already high." Ric Traynor, executive chairman of Begbies Traynor, said: "With confidence and investment both subdued, the challenges for businesses remain substantial."

 

City AM

The Times

Daily Express

Daily Mail

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BlackRock’s private credit investing division and other lenders are seeking to recover more than $500m after falling victim to what has been described as a “breathtaking” fraud. Bankim Brahmbhatt, the owner of telecom services companies Broadband Telecom and Bridgevoice, is accused of fabricating accounts receivable that were supposed to be used as loan collateral. BNP Paribas helped BlackRock’s HPS Investment Partners finance the Brahmbhatt loans, according to people familiar with the matter. Brahmbhatt disputes the allegations of fraud.

 

Wall Street Journal

The Daily Telegraph

Executives at Blackstone, Apollo and Ares have said the firms had no exposure to US companies First Brands and Tricolor at the time of their bankruptcies, and the private credit industry had been unfairly linked to the collapses. Daniel Leiter, a senior managing director at Blackstone, told a British House of Lords committee examining the rise of private markets that: "There has been a lot of misinformation," and said private credit was fundamentally safer than bank funding, which risked wider contagion.

 

Reuters

German athletic apparel and footwear corporation Puma plans to cut 900 more white-collar jobs globally by 2025, expanding its cost-reduction program under new CEO Arthur Hoeld. The company aims for a brand reset in 2024, a transition year in 2026, and growth starting 2027. Q3 sales dropped 15% to €1.96bn, and the group reported a net loss of €62.3m, reversing a €127.8m profit a year ago. Puma maintained its 2025 guidance, expecting low double-digit sales decline and operating losses, while aiming to become a global Top 3 sports brand.

 

Bloomberg

Financial Times

Wall Street Journal

Spanish department store chain El Corte Inglés has dismissed CEO Gastón Bottazzini just weeks before the crucial Christmas sales period, which accounts for nearly 30% of annual revenue. The company announced a "remodelling of the executive line," appointing Santiago Bautista as the new general director. Bottazzini's departure follows reported disagreements with president Marta Álvarez and other shareholders. He had been in the role for only eight months, having previously worked on the company's strategic plan until 2030.

 

El Pais

Hootsuite, the Canadian parent company of Luxembourg-based social media listening and analytics platform Talkwalker, has announced a 20% reduction in its global workforce. A spokesperson said: "On Monday, we made the difficult decision to restructure our organisation." Talkwalker, which has faced financial losses, had an average of 41 employees in Luxembourg for the financial year ending 31 December 2024, down from 56 the previous year. The company reported a net turnover of €37m in 2024, with a net loss of €9.5m. Hootsuite says it is committed to supporting affected employees during this transition.

 

Luxembourg Times

Cindy Rose, the new chief executive of advertising network WPP, has initiated a strategic review that is designed to simplify operations amid declining revenues and an "unacceptable" recent performance. Rose said the firm had not "gone far enough or fast enough in adapting to the evolving needs of our clients."

 

Financial Times

The Times

The Daily Telegraph

Ofcom boss Melanie Dawes says tech companies are to be subject to audits of the social media algorithms used to promote what children can see on their feeds.

 

Financial Times

Volkswagen has reported its first quarterly loss since the onset of the pandemic and attributed the downturn to US tariffs which it says could cost the carmaker €5bn annually. VW recorded a €1.3bn loss in the third quarter, compared to a €2.8bn profit for Q3 2024. The company plans job cuts and production reductions to mitigate losses. Arno Antlitz, Volkswagen's chief financial officer, said the firm "must rigorously implement the performance programmes in place, push forward efficiency measures and develop new approaches."

 

The Daily Telegraph

Adidas expects US import tariffs to reduce its 2025 operating profit by €120m ($140m), with the heaviest impact anticipated in Q4. CEO Bjorn Gulden acknowledged uncertainty around consumer reactions: “We do not know how the consumer will react in the US when these higher prices come into effect.” In response, Adidas has already raised US prices to help offset tariff-related costs.

 

Reuters

More than half of UK businesses are altering their ethical policies due to the Trump administration's criticism of the so-called "woke" agenda. A study by Freeths, involving 250 general counsels and chief legal officers from major firms, reveals that 28% have made significant changes to diversity, equity, and inclusion (DEI) initiatives. The report highlights a trend where profit motives often overshadow ethical considerations in business decisions.

 

The Guardian

The UK's Competition and Markets Authority may ask the High Court to disqualify Cinven co-head Supraj Rajagopalan after the private equity firm was fined £52m over price gouging.

 

Financial Times

Emma Walmsley, the chief executive of GSK, has cautioned UK finance minister Rachel Reeves against altering the pharmaceutical tax regime. She said it was "absolutely critical" to incentivise investment, including maintaining tax credits on research and development, adding: "The more important area of focus for us is to make sure that nothing happens that hampers UK competitiveness in terms of changes to tax measures."

 

Daily Mail

UK employers' pay awards are likely to hold at their current 3% level over the next 12 months, data firm Brightmine has said, observing that affordability concerns and the raising of employers' social security contributions in Rachel Reeves' 2024 budget were capping awards.  Sheila Attwood, Brightmine senior content manager, noted a growing focus on benefits, recognition and skills-based pay.

 

Reuters

Schiphol Airport is deploying 200 new employees to assist with the implementation of the new EU Entry/Exit System (EES), which aims to streamline border control for non-EU passengers. The EES will replace traditional passport stamping and is set to be rolled out across 29 countries. Elise de Kok, programme manager, said: "Schiphol has enough staff to handle the system."

 

NL Times