Not necessarily. Safe Harbour is not a formal insolvency appointment, it is a defensive legal mechanism that may create time to attempt a business turnaround. If the business is no longer viable, creditor pressure is escalating, or recovery is unrealistic, Voluntary Administration or liquidation may be the more appropriate path. The right option depends on the company’s financial position, creditor exposure and whether a realistic recovery plan exists. Safe Harbour is typically only an option when directors seek advice early on, which is why advice should be sought when debt distress is first noticed.