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Overview of Struggling Sectors and Companies
Company insolvencies in Australia reached a decade-high in the 2023-2024 financial year, driven by high inflation, rising interest rates, and increased operating costs.
- Retail:A number of retailers have faced collapse as consumers cut back on discretionary spending.
- Godfreys: The vacuum cleaner retailer entered administration.
- Marquee Retail Group: The parent company of brands like Colette by Colette Hayman folded.
- The Body Shop: Its UK parent company's collapse put the future of its Australian stores in doubt.
- Adore Beauty: While not in collapse, it has faced investor disquiet and pressure to restructure.
- Construction: The industry has accounted for a significant portion of the increase in insolvencies, with a number of large residential construction firms going under due to cost pressures and labour shortages. This is also reflected in the a forecast decline in revenue for the broader construction industry in 2026.
- Hospitality: Cafes, restaurants, and accommodation services are experiencing a high rate of collapse as consumers reduce dining out and other discretionary expenditure. These businesses tend to be more illiquid and highly geared than other industries.
- Other Sectors:
- Energy companies are facing a secret struggle with record levels of unpaid customer bills.
- BHP, a major iron ore miner, is facing challenges related to a weakening Chinese economy and pressure on commodity prices.
- CSL, a healthcare giant, has faced investor pressure due to declining US vaccine rates and market performance.
- Corporate Travel (CXL) is "fighting for its life" after issues with customer overcharging.
- Zone RV, a luxury caravan company, recently collapsed
