The number of U.K. businesses in critical financial distress soared in the third quarter, reflecting tax increases, inflation and a challenging economic backdrop, according to a new study, the Wall Street Journal reported. The number of businesses in critical financial distress surged by 78% on year and by 13% on quarter to 55,530 companies, consultancy Begbies Traynor BEG 0.91%increase; green up pointing triangle said in its latest Red Flag Alert report on Thursday.

New Fortress Energy, a U.S. liquid natural gas (LNG) infrastructure firm, is considering restructuring its $9 billion debt via a U.K. “scheme of arrangement” rather than filing for chapter 11 bankruptcy in the U.S., according to Bloomberg News. This court-supervised U.K. process could be cheaper and less disruptive to the company’s contracts than a typical U.S. bankruptcy proceeding.

A stake in a 186kg gold cube is poised to go on sale after its owner filed for bankruptcy, The Telegraph reported. The Castello Cube, an artwork made from 24-carat gold, is back on the market as part of insolvency proceedings involving Klemens Hallmann, a real estate tycoon. The Austrian businessman owns a 32pc stake in the Castello Cube, which will be transferred to administrators as they seek to raise funds to repay his creditors, according to debt collection agency Creditreform.

More than 2,000 Scotland-based jobs are at risk as oil and energy services group Petrofac has applied for administration, Sky News reported. The group's operations will continue to trade, and options for restructuring of the company and a possible merger or acquisition are being actively explored with its key creditors, the company said on Monday. People close to the company say they are hopeful a buyer can be found swiftly for its North Sea operations, with one suggesting that it could even happen in the coming days.

Ed Miliband, the Energy Secretary, has put officials on alert for the potential collapse of a crucial North Sea operator, amid fears that the Government will be forced to step in, The Telegraph reported. Petrofac, one of the UK’s leading offshore oil and gas contractors, was on Friday scrambling to secure its future after the loss of a key contract left it pushed to the brink of administration. Crisis talks with lenders are scheduled for the weekend.

Britain’s car factories have suffered their sharpest downturn in decades after a major cyberattack paralysed output at Jaguar Land Rover, the country’s biggest manufacturer, Euronews.com reported. New figures from the Society of Motor Manufacturers and Traders (SMMT) show car production fell by 27.1% in September, with just 51,090 vehicles leaving UK factory lines. The hit was even worse when accounting for all vehicle types, including vans — down 35.9% year-on-year.

U.K. retail sales unexpectedly rose in September, helped by tech stores and demand for gold, the Wall Street Journal reported. Retail sales volumes were 0.5% higher on month in September, marking a fourth-straight rise, following an increase of 0.6% in August, the Office for National Statistics said Friday. Sales at computer and telecommunications retailers rose strongly, while there was continued growth among nonstore retailers, the ONS said. Online jewelers reported strong demand for gold, it added.

Two key enablers of a scheme designed to undermine insolvency legislation by allowing business owners to keep their assets and drop debts have been banned as company directors, Credit-Connect.co.uk reported. Sisters Karen Mortimer and Joanna Seawright put the creditors of 138 companies at risk of financial loss after taking control of the businesses which were referred to them by Atherton Corporate UK (Ltd) and Atherton Corporate Rescue Limited.

A bus operator serving Nottingham and Nottinghamshire has proposed to enter an insolvency process as it faces "challenging trading conditions," BBC.com reported. Community Transport for Nottingham (CT4N), which runs more than 20 local services, announced on Wednesday it had proposed a company voluntary arrangement (CVA). If the CVA is approved by creditors, the company said it would be able to preserve the jobs of about 75 employees and continue trading.