Restructuring and Recovery Insights

In this Quarter we are focusing on Voluntary Administrations which is the primary restructuring tool available to Medium to Large entities who are in financial distress.

Key Trends

• Appointment volumes largely consistent, with June Quarter last year – 4.2% gain in volume registered.
• Positive signs for Manufacturing, Retail and Construction – industry stabilisation and signs of improvement lead to 26% – 59% improvements in key industries.
• Significant distress for Healthcare & Social Assistance, registering 378% increase. The dramatic escalation in financial distress appointments is call to action — early intervention and practical solutions are now more critical than ever.
• Vincents delivers 100% return to creditors in rare restructuring success story – Read more here!

What this means for advisors

Proactive restructuring dialogue is essential. Cash flow forecasting, HR cost control, and alternate funding strategies should be front and centre.
Voluntary Administration continues to be the core tool for business rescue in Australia’s mid-market. However, its success now depends more than ever on:
• Early identification of financial distress
• Effective creditor strategy development
• Accurate short-term cash and funding pathways
Stay close to your clients in health, transport, and regional service industries.

Deep Dive into Corporate Restructuring through Voluntary Administration

Voluntary Administration appointments registered a marginal increase from 331 (June Qtr 2024) to 351 (June Qtr 2025, with NSW registering a small decrease while Queensland and Victoria increase by over 10%).
Queensland’s growth is robust and outpaces total average growth, suggesting worsening conditions and commonly lags its southern counterparts. Victoria shows above-average momentum, indicating worsening conditions on a macro level.

Voluntary Administration – by State (June 2025 Quarter)

Industry Highlights

Healthcare & Social Assistance surges, registering 378% increase: Medical Industry appointments skyrocket from 9 to 43, confirming that financial stress is engulfing previously stable providers during 2025.
Transport, Postal and Warehousing struggle, 260% increase: Sector continues to underperform amid fuel cost volatility, supply chain disruption, and legacy cost structures – volume rose from to 36 in June 2025 Qtr (10 in June 2024 Qtr)
Positive signs for Manufacturing and Retail: while conditions remain challenging and overall volumes high, reductions in the Manufacturing (59%) and Retail (35%) sectors where achieved indicating they may be entering a stabilisation period following the post-COVID-19 washout.
Is Construction industry distress reducing? Potential relief may be on the horizon with improvement observed in June 2025 Qtr, with a decrease of 26%. Do not mistake this as a sector recovery: Construction still contributes significant volume and remains fragile and prone to marco-economic factors.

Voluntary Administration Year-on-Year Movement – by Industry (June 2025 Quarter)

Medical Industry Deep Dive

Financial distress within Australia’s health and social services sectors has surged, with formal appointments rising to 43 in Q2 2025 from just 9 a year earlier—a dramatic shift for previously stable industries.
Mounting pressures are evident across the board: rising wage costs, static government rebates, delayed NDIS/government payments, and increasing compliance costs are severely impacting GP clinics, specialists, hospitals, and community care providers.
Even historically resilient operators—such as private hospitals and allied health—are now facing financial strain, with smaller, regional, and specialist practices particularly vulnerable due to workforce shortages and persistent cash flow gaps.

Voluntary Administrations in Medical Industry (June 2025 Quarter)

Case Study

Voluntary Administration Success: Employees Retained, Creditors Paid in Full
Discover how a successful voluntary administration engagement helped an AI platform through a sale while retaining employee jobs, and paid creditors in full.
Learn more →

Get in Touch

If you have any questions or would like to discuss your business needs, please contact our Restructuring and Recovery team.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.