The arrival of business distress is often subtle at first – a few missed payments, mounting creditor pressure, sleepless nights. These subtle signs can lead to stronger warnings and the very real prospect of insolvency. After three decades in this industry, we have come to understand that behind every spreadsheet lies a human story that deserves consideration— and that the emotional toll can be just as challenging as the financial one.
How many insolvencies does New Zealand see each year?
The business landscape in New Zealand continues to present challenges for business owners. The BWA Quarterly Market Report for the end of 2024 showed that insolvencies had more than doubled from a 2021 low of 1,244 cases to 2,545 in 2024. Behind each of these statistics lies a personal story of struggle and tough decisions.
When a business faces looming financial difficulties, the impact reaches far beyond the boardroom or balance sheet. A business represents years of hard work, personal sacrifice, and significant investment of time and money. Business distress becomes as much a personal crisis as a financial one. Finding a trusted insolvency advisor to guide you through this difficult time is one of the most important steps you can take to relieve the mounting pressure and feel hopeful about the future.
Business challenges rarely stay contained. They extend into every aspect of operations, affecting employee confidence, straining supplier relationships, halting business investment, and creating tension that inevitably follows you home. In this situation, clear thinking becomes harder, at a time when you need it most. Despite the stress and overwhelm, understanding your options is crucial. This is why seeking professional insolvency advice early is critical.
When should a business seek insolvency advice?
Timing matters. The earlier you seek advice, the more options remain available. This is certainly the case for businesses that might benefit from the voluntary administration process.
Working with a voluntary administration expert isn’t an admission of defeat, it’s a practical step that gives your business breathing space. It pauses creditor demands while a recovery plan is worked on. During this time, options like company restructuring, business sale, or creditor compromise can be explored. Having experienced and expert guidance ensures you have someone who understands both the practical and personal challenges you’re facing.
How can company restructuring help revive a failing business in NZ?
Company restructuring is a powerful tool for business revival, offering multiple pathways to recovery. Through careful analysis, we can look beyond the temporary challenges for viable attributes within the business. Restructuring could mean consolidating business divisions, optimising staffing structures, reworking debt arrangements to improve cash flow, or realigning business models with current market demands. In New Zealand, we have seen companies emerge from restructuring, not just surviving, but well-positioned for future growth.
Seek professional insolvency advice
If your business is showing signs of financial stress, remember that seeking help isn’t a sign of weakness, it is a practical step toward finding solutions. At BWA Insolvency, we understand that every business challenge comes with a human story, and sometimes having that initial conversation can help bring hope for a better path ahead.
If you would like to discuss your options, contact Bryan today for a confidential, no-obligation chat.