The Future of Restructuring: Why Leadership Vision Matters in Times of Market Disruption

The UK’s Restructuring Landscape Is At A Turning Point 

The UK’s restructuring landscape has rarely felt so fluid. In the second quarter of 2025, there were 30,305 individual insolvencies, up from 29,312 during the same period in 2024. On the surface, that’s just a slight rise, but beneath it, the pressures are building.  

Small businesses remain the most vulnerable, and consumer-facing sectors such as retail, hospitality, business services and construction continue to bear the brunt. High energy and labour costs, tight credit and changing demand have created a perfect storm. 

As R3’s recent analysis notes, even a slight dip in insolvency filings can hide the broader reality of companies still struggling to manage heavy debt and volatile trading conditions. You can feel that strain across boardrooms and high streets alike. 

A Tougher Economic Climate? 

This all comes at a time of ongoing economic uncertainty. The Bank of England’s base rate, which peaked at 5% in 2023, is slowly edging down. KPMG expects it to reach around 3.75% by the end of the year. Inflation, which spiked above 10% in 2022, has eased but not disappeared, sitting stubbornly at 4.1% as of August 2025. 

For many households and businesses, that combination of higher borrowing costs and persistent inflation has bitten hard. Energy and transport remain unpredictable, influenced by geopolitical tensions that show no sign of calming.  

As restructuring expert Robert Young put it, “Gone are the days when UK business owners could afford to focus solely inward. Geopolitical volatility, regulatory changes, and domestic fiscal policies all have a direct impact, often overnight.” 

It’s true. The challenges facing business leaders today stretch well beyond traditional management. We’re dealing with the lingering effects of the pandemic, Brexit aftershocks, and the fallout from global conflicts that have reshaped supply chains and confidence. The world feels less predictable, and that uncertainty filters into every strategic decision. 

The Case for Early Action 

In this environment, the need for early, proactive action has never been clearer. Predictions for the final quarter of 2025 point to rising corporate insolvencies as temporary supports fall away. Many business owners are choosing closure over turnaround. I understand that impulse. Sometimes the clean break seems easier than the fight to recover. But in my experience, leadership can change that calculation. 

With early intervention, the right advice and a clear sense of direction, many firms can not only survive but also emerge stronger.

What Does Leadership in Disruption Look Like? 

In volatile markets, leadership really does separate those who endure from those who fall away. The most resilient organisations are the ones that pair long-term vision with short-term agility.  

I’ve seen this time and again in my own career. The leaders who succeed are those who can hold two ideas at once: the immediate need to steady the ship, and the bigger ambition of where they want to steer it. 

Dr Serkan Ceylan’s research found that companies investing in leadership resilience see nearly 7% higher revenue growth. It’s not a coincidence. When leaders adapt quickly, they give their teams permission to do the same.  

Think of Netflix’s shift from DVD rentals to streaming, then to producing original content. Each move was bold, but it came from a willingness to evolve without losing sight of the goal. In restructuring, that same agility is essential – exploring new business models and markets while you’re still fixing the balance sheet. 

The Value of Vision 

Every turnaround starts with a clear vision. CEOs need to set that destination early, whether it’s about emerging leaner, finding a buyer or winding down in an orderly way. That clarity brings focus and purpose to difficult decisions.  

Recently, I came across London Business School’s work on digital disruption, which suggested that middle managers are the key translators of vision into daily action. I’ve always believed that. Leadership isn’t about holding all the answers; it’s about giving others the confidence to act on the plan. 

Transparency and communication sit at the heart of that. I’ve seen too many restructurings derailed by secrecy. When people don’t understand what’s happening, they fill the gaps with their own fears. The best leaders bring people with them through honesty. They explain the reasons behind decisions and show empathy even when the news is hard. 

For me, effective leadership in a crisis is about more than analysis or structure. It’s about character – showing resilience when others waver, staying calm when the noise grows loud, and being visible when it matters most. People don’t expect perfection; they expect integrity and clarity. 

It also means engaging openly with stakeholders. Creditors, regulators, suppliers and landlords all have a role to play. Treat them as allies, not opponents. When you’re transparent and credible, they’re far more likely to help you find a solution that preserves value for everyone involved. 

The best leaders I’ve worked with share one other quality: they keep learning. They use data and technology not just to report, but to anticipate.

Analysing Vision in Practice 

One example that really captures this spirit is The Body Shop’s 2024 turnaround. The brand had been under pressure for years – burdened with £276 million in debt and facing hundreds of store closures. Its ethical reputation, once its strongest asset, was in danger of being lost. 

Under new CEO Charles Denton and ownership by Mike Jatania’s Aurea Group, the business made a remarkable recovery. Within 100 days it turned a £2 million profit, generated £28 million in sales and ended the year 17% ahead of forecasts. 

What struck me most wasn’t just the numbers. It was the leadership behind them. The team made tough choices – closing 85 stores, cutting jobs, consolidating operations – but never lost sight of what the company stood for. They rebuilt trust with staff and customers, reconnecting with the brand’s original purpose. Denton captured it beautifully when he told his team, “Storm Darragh may have tried its worst, but we weathered it and some.” 

That to me is what leadership looks like in practice: clarity of vision, honesty in execution and the courage to make hard calls while keeping the organisation’s identity intact. It’s living proof that renewal is possible even in the harshest conditions. 

Riding the Legal Tide: What Should Leadership Know? 

Since the introduction of the Corporate Insolvency and Governance Act (CIGA) in 2020, the UK’s restructuring framework has changed dramatically. The Part 26A restructuring plan has given boards a vital new tool – one that allows them to include dissenting creditors in a deal if the court agrees it’s the better alternative. The Adler ruling last year reinforced this and encouraged directors to act early rather than wait for everyone to agree. 

We’ve seen that confidence reflected in recent cases like McDermott International and The Body Shop, where courts have supported leadership teams presenting credible, fair proposals.  

But the legal environment is also becoming stricter. The Supreme Court’s decision in Invest Bank v El-Husseini confirmed that directors cannot hide behind complex structures to move assets out of reach. Transparency and accurate valuation are no longer optional. 

The Insolvency Service’s 2024-29 strategy makes clear that scrutiny of director conduct will intensify, and HMRC is already taking a tougher line in CVA negotiations. For leadership teams, the message is simple: treat restructuring as transformation, not emergency surgery. Build governance into every step. Test every assumption. In an era of heightened accountability, credibility is as valuable as capital – and often harder to regain once lost. 

How To Stay Ahead of the Curve 

One of the most consistent lessons I’ve learned is that timing is everything. Once a company crosses into the “zone of insolvency”, the options narrow dramatically. The best leaders act long before that point. 

That starts with constant vigilance. Don’t wait for the year-end accounts to tell you what’s wrong. Look at rolling forecasts, cashflow models and stress tests every month. Ask yourself uncomfortable questions: what if sales fell by 20%? What if credit tightened or a key customer vanished overnight? Those scenarios might sound extreme, but planning for them gives you confidence and control. 

In my own teams, I’ve always pushed for cross-functional risk reviews. Finance, HR, operations, IT – everyone has a piece of the puzzle. When those perspectives come together, patterns emerge earlier. With modern analytics tools, it’s now possible to integrate internal performance data with external economic indicators and pick up on stress signals you might otherwise miss. 

Relationships matter too. Keep your lenders, landlords and suppliers close. Tell them what’s happening before the rumours start. In my experience, transparency buys goodwill. It might mean a creditor gives you breathing room or a supplier extends terms. When people trust your intent, they’re more willing to help you through the storm. 

And don’t leave it until you’re in freefall to call in advisers. Bring them in early when you still have options. I’ve seen too many good businesses leave it too late, often because of pride or fear. The earlier you act, the more choices you keep. 

Finally, invest in preparedness. Train your teams so that if you ever need to enter a CVA, administration or scheme, the process doesn’t feel alien or chaotic. Knowledge creates calm, and calm breeds confidence. 

Driving Leadership with Vision  

The next wave of restructuring in the UK will test leadership at every level. Interest rates remain high, inflation is persistent and global uncertainty is not going anywhere soon. But this period will also define the leaders who can see beyond immediate disruption. 

The CEOs who will thrive are those who stay curious, communicate openly and act decisively. They are the ones who spot the warning signs early and use them as an opportunity to adapt. I’ve seen companies use digital tools to detect financial strain weeks before it shows up on the balance sheet – and that insight gives them the time to reset and recover. 

Restructuring, at its heart, is not about endings. It is about beginnings. Rescue, recovery, renewal. The leaders who approach it with clear eyes and steady hands will not only survive the turbulence but emerge stronger, more focused and better prepared for whatever comes next.