Over 3,500 Shropshire shops and businesses now in 'significant distress'
Over 3,500 businesses are in serious trouble in Shropshire, according to new figures released this week.
A total of 3,764 businesses in the county are reportedly in "significant" levels of distress in the second quarter of 2025, a rise of 2.5 per cent from the same period in 2024.
The towns of Shrewsbury and Bridgnorth have been hardest hit, according to the 'Red Flag' report from consulting firm Begbies Traynor, which was released this week.
In the county town, 521 businesses were affected, a rise of over 20 per cent, while in Bridgnorth numbers of businesses in trouble rose by 6.4 per cent to 234.
However, the number of businesses in distress fell in Telford, dropping by 2.8% to 1,088 for the quarter, and also in Ludlow, which fell 12 per cent to 104.
The county has seen several large firms go to the wall this year, including the high-profile loss of 150 jobs in Telford after building firm Elements Europe entered administration in June.
The firm, which mostly built modular rooms to be used in student accommodation blocks, hotels, and residential developments, brought in the administrators after experiencing "significant losses" on two large contracts in Birmingham and London.
Around 25 jobs were also lost in Dorrington near Shrewsbury after truck body firm Bulkrite shut down operations in June.
In the public sector, Shrewsbury and Telford NHS trust also confirmed it was cutting 150 roles earlier this year, while in 2024 Shropshire Council said it would shed around 10 per cent of its 5,500 strong workforce in an effort to reduce costs.
According to the figures, real estate and property firms were hardest hit, with an increase in distressed businesses of around 25 per cent for the sector, followed by the construction industry.
Across the wider Midlands more than 80,000 companies are now classed as being in ‘significant’ economic distress, a year-on-year increase of 7.6%. Nationally, the latest Red Flag Alert research for Q2 2025 recorded 666,876 businesses in significant distress, a 10.8% increase year-on-year.
"In this climate, businesses are finding it difficult to get a steady footing, confront and overcome an array of challenges including low consumer confidence, rising taxes and global economic changes. The impact of these factors is reflected in the increased numbers of significantly distressed businesses across Shropshire," said Nick West, Partner at Begbies Traynor.
"It is likely we will see businesses continue to fall down in the coming year. However, this presents opportunities to pick up business for surviving and then thriving businesses. We are already seeing that some areas are showing resilience with small reductions in distressed businesses.
"There are very talented leaders guiding promising businesses in Shropshire. As with any business, good leadership and sound guidance is vital and can always lead to opportunities again."
