What are the main drivers / causes of corporate distress?

Answer

, Blockbuster, Sears); (2) Financial/Capital Structure — over-leveraged at acquisition, debt maturity wall, inability to refinance; (3) Liquidity — working capital squeeze, customer payment delays, supply chain disruption; (4) Macro/Industry — recession, commodity price crash (oil & gas 2014-2016), interest rate spikes; (5) Legal/Regulatory — major litigation (asbestos, opioid), regulatory action (FTC, DOJ), tariffs; (6) Governance/Fraud — accounting irregularities (Enron, Wirecard), management failure.