Fuel cell developer Bramble Energy has entered administration after failing to secure new investment, in turn wiping out sector backer Hydrogen Capital Growth’s £11m equity stake.
The collapse follows unsuccessful fundraising efforts, despite commercial interest from major original equipment manufacturers (OEMs) including Toyota. It also follows an accelerated sale process that ultimately attracted no viable solvent bids, despite what the company had described as “a number of parties [showing] initial interest.”
Earlier this year, Bramble announced a partnership in Taiwan, launching a £1.5m initiative to advance hydrogen production. The project, known as POWER – Printed Circuit Board Optimised Water Electrolysis with Reduced Platinum Group Metals (PGM) – was based on Bramble’s printed circuit board electrolyser technology.
Following the high-profile collapse earlier this year of Microsoft-backed Builder.ai and a string of other UK tech failures including underwater drones business Manta Systems, frustrated funders remain decidedly nervous about the whole tech sector. Their qualms are compounded by the wider economic picture.
Basic fundamentals such as falling demand and declining sales are a chief concern, while confidence in government policy as a driver of success in the tech sector is very weak. Even so, UK tech businesses pitching to potential investors remain committed to innovation and pursuing key growth areas, principally Artificial Intelligence (AI), digital transformation, automation and cybersecurity – in other words, operational efficiencies.
Longer term, UK tech remains in a good place. As home to eight of the world’s top 50 universities, companies can access a healthy pool of skilled talent, and research and development programmes. There is no shortage of software engineers here. Now that interest rates have eased, UK growth companies need to be nimble and ready to take quick action if they want to secure their longevity, which means being prepared on a number of fronts:
- Data-ready for fundraising – financial content for Information Memoranda
- Efficient structures for founders and directors
- Support for tech grant applications
- Assisting in communications and negotiations with lenders
- Advice on R&D allowances
- Recognition of complex revenues
- Treatment of Intellectual Property and intangible assets
- Advice on structuring strategic alliances and major contracts
- Scaling strategies
- Due diligence on potential transactions
Tech entrepreneurs looking to steady their businesses while funding waters remain choppy are welcome to get in touch for an exploratory discussion.
Global insolvencies
Not least ahead of the UK Autumn Budget, it’s natural for businesses within these shores to focus mainly on the outlook for companies at home. The same goes for our own close interest in monthly statistics from the UK Insolvency Service. Nonetheless it’s useful (and sometimes strangely heartening) to consider the wider picture and the impact of operating in a global economy.
Credit insurance giant Allianz Trade’s latest Insolvency Report analyses the effects of recent US tariffs and global trade shifts, while updating forecasts for business insolvencies right through to through 2027. It projects that global business insolvencies will end 2025 up by 6%, with a peak anticipated in 2026, marking a fifth consecutive annual rise at 5%, with levels 24% above pre-pandemic averages. A modest easing of 1% is forecast for 2027.
The UK is expected to stabilise in 2025, but could face 1,100 extra insolvencies related to artificial intelligence (AI) reducing demand for certain services. A credit growth increase of 2.5% in 2026 could reduce UK insolvencies by 2.5 percentage points. The Eurozone’s GDP growth forecast of 0.9% in 2026 remains below the level needed to stabilise insolvency trends.
As we often highlight on these pages, the construction sector accounts for 18% of UK insolvencies, and tighter fiscal conditions could force further pressure. The automotive industry may also face stress from technological disruption and competition, especially if subsidies are reduced. In Europe, new business registrations were 9% higher from 2021 to 2024 than in 2016–2019, adding to insolvency risks in line with historic patterns of early-stage failure.
Allianz Trade estimates that 27,650 UK businesses will become insolvent in 2025, just below the 12-year record of 28,100 cases in 2024. Insolvencies are forecast to dip to 25,900 in 2026. While global insolvencies are set to rise by 6% in 2025 and 5% in 2026, the UK is expected to plateau at around 31% above pre-pandemic levels through 2024 and 2025. Higher costs, wages and taxes dragging on businesses’ resources will remain a major driver of these failures.
Looking at our closest neighbours, France could see an increase of 6,000 insolvencies due to export declines, while Spain and the Netherlands may face up to 2,900 and 700 additional cases, respectively. Germany, the UK, Italy, and Belgium are expected to experience negligible impacts from reduced exports, supported by diversified markets and stronger domestic bases.
The imposition of US tariffs was expected to increase costs for raw materials and manufactured goods, which has a direct impact on credit insurance claims, particularly in auto and property. Supply chain disruptions and material shortages are contributing factors, and these developments are likely to affect premium pricing.
Cross-border complexity
Our cross-border restructuring and insolvency experience at Buchler Phillips, supported by an international team, represents some of our most challenging and fascinating work over the decades – from government imposed sanctions to chasing and tracing stolen assets across the world.
Companies operating across multiple jurisdictions with different insolvency regimes adds to the complexity of a corporate collapse. The framework for cross-border insolvency in the UK is based on the United Nations Commission on International Trade Law (UNCITRAL) model, aimed to promote consistency, fair treatment of creditors, asset protection and legal certainty. The UK implemented this framework via the Cross‑Border Insolvency Regulations 2006 (“CBIR 2006”), enabling foreign representatives to seek assistance from UK courts in foreign insolvency proceedings.
Recognition of foreign insolvency proceedings hinges on case law. Leading law firm Addleshaw Goddard helpfully identifies three court actions and their most important aspects to consider when seeking to protect creditor interests and maximise asset recovery in cross-border assignments.
Court jurisdiction
A UK court will typically recognise a foreign insolvency judgment if the debtor was domiciled in England, or has submitted to the jurisdiction of an English court. This was addressed in Xenfin Fund 1 Trading Ltd (In Liquidation) v GFG Ltd (2025) — a Guernsey parent company (owned by a Guernsey entity) argued that Guernsey was the proper forum, given local connections and a jurisdiction clause in Guernsey law. The English Court held that the claimant had acted reasonably in bringing proceedings in England, given its strong links to England, demonstrating the English courts are willing to assert jurisdiction where the choice to proceed in England is reasonable.
Financial distress
In Re Sturgeon Central Asia Balanced Fund Ltd (in liquidation) (2020) the Court clarified that for recognition under CBIR 2006, the foreign entity must be insolvent or in significant financial distress. A company that is solvent — even if subject to winding-up under insolvency legislation — does not qualify as a “foreign proceeding” under Article 2(i) of UNCITRAL. Consequently, the recognition order in that case was terminated because the company was solvent.
Nature of the assets
Where the debtor’s assets include immovable property located in England & Wales, English courts will not recognise foreign judgments in respect of rights and interests in those assets. In Kireeva v Bedzhamov [2024] UKSC 39, a trustee in Russian bankruptcy proceedings claimed an interest in a UK property. The Court held the trustee had no interest in the English property under the “immovables rule”.
A foreign insolvency judgement cannot automatically form the basis for proceedings in England; an application must be made to the English and Welsh courts to recognise it. Applicants in cross-border insolvency recognition proceedings should:
- Familiarise themselves with the statutory framework such as UNCITRAL and CBIR 2006.
- Assess the geographic extent of the debtor’s assets and operations to ensure all relevant jurisdictions are identified
- Consider whether a stay is available to halt creditor enforcement and prevent asset dissipation, giving room for restructuring
- Recognise that post-Brexit the UK no longer benefits from automatic mutual recognition with EU member states, so local laws must be relied upon
- Anticipate increased complexity and higher costs in cross-border insolvency from diminished automatic recognition and reliance on informal protocols
- Address immovable asset issues: for immovables in England & Wales, foreign representatives must apply under Article 21 of CBIR
- Monitor emerging case law developments
Buchler Phillips Hospitality Index: closures remain high in Q3
The number of hospitality businesses entering insolvency eased only very slightly in the third quarter of 2025, yet remained historically high, reflecting challenging trading conditions for the industry.
Some 857 accommodation and food service companies, including hotels, restaurants and pubs, closed in the three months to September 2025, down 2.7% from 881 in Q2 this year, but matching the same three months of 2024, according to government data. Offering little cheer, the number of monthly hospitality insolvencies has remained consistently over 275 so far this year.
The Buchler Phillips Hospitality Index of insolvencies, which has tracked monthly figures since January 2014, edged down a shade from 197.3 in June to 191.9 in September. It peaked in August 2023 at 273.4 with a spike in the sector’s business closures.
High profile operators closing high street units have included, perhaps most notably, Pizza Hut, which shut 68 restaurants and put 1,200 jobs at risk after its UK operation entered administration. Simmons Bars was sold in a pre-pack administration deal, while Oakman Inns was less fortunate.
Jo Milner, Managing Director of the leading turnaround and restructuring firm, said:
“Life remains extremely tough for the hospitality sector. Along with retail and construction it’s right up there with the worst hit UK business sectors. Pressure on consumer spending remains, staff costs have risen significantly and pre-Budget uncertainty hasn’t helped.”
Hospitality businesses face an estimated £3.4bn of additional expenses, not least because of the increase in employers’ National Insurance contributions. Industry leaders have warned that potentially higher mandatory pension contributions for staff could be the final nail in the coffin for some companies.
Buchler Phillips Hospitality Index (BPHI)
The BPHI is compiled from monthly company insolvency statistics made available by the UK Government’s Insolvency Service. Using a base of January 2014 = 100.0, the index tracks the sector classification of Accommodation and Food Service Activities.
As ever, the Buchler Phillips approach to business challenges is ‘workout, not bail out’. Don’t hesitate to get in touch for an exploratory chat if your business needs help. Addressing the cracks now will, in many cases, avoid the need to start again.
Our helplines below are open for free initial consultations.
Jo Milner 07990 816904
David Buchler 07836 777748
Let’s get to work!
About Buchler Phillips
Buchler Phillips is an independent, UK based corporate recovery and restructuring firm, with an impeccable Mayfair heritage dating back to the 1930s.
Led by David Buchler, former Europe and Africa chairman of global consultancy Kroll Inc, our senior team is equally comfortable advising large corporations, Small & Medium Enterprises (SMEs) or individuals. In addition to decades of experience, each of our Partners brings to any given assignment unique independent insight, free from conflicts of interest, that is often sought but rarely found by clients or co-advisors.
The firm is sector-agnostic, but has particularly strong credentials in property; financial services; professional services; leisure and hospitality; retail and consumer; UK sports; media and entertainment; transport and logistics; manufacturing and engineering; technology and telecoms.
Our activities fall broadly, though by no means exclusively, into financial restructuring, including fraud and forensic investigations; operational restructuring and turnaround; expert witness services and recovery solutions for corporates and individuals.
This newsletter is published for the purposes of general information only and does not constitute advice. Any action taken by readers upon the information above is entirely at their own risk.