Credit, Collections & Insolvency News
The number of UK mid-sized businesses at risk of becoming a ‘zombie’ company has risen, as rising costs and challenging economic conditions leave little breathing room for growth, according to new researchfrom accountancy and business advisory firm BDO. In the last 12 months, one in six mid-sized businesses (15.9%) have been deemed to be at risk…
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New research by Kearney has found that the global share of ‘zombie companies’ has risen 5% year-on-year in 2022. The study shows a net increase of 95 zombies globally, rising from 1,893 in 2021 to 1,988 in 2022. The research estimates the number of zombie companies to rise by over a fifth (21.5%) across the…
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Global consultancy partnership Kearney has released new data showing that a rapidly increasing number of businesses have become ‘zombie companies’, namely firms that have been unable to cover interest costs on their borrowing for the past three years, based on their current operating profit. The zombie companies are at imminent risk of insolvency as interest…
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Business recovery group Begbies Traynor has warned that the number of zombie companies is set to reach a record high. Zombie firms are usually defined as low-growth or heavily-indebted firms barely able to cover interest payments on company debt. Companies are also grappling with soaring energy bills, diminishing consumer confidence and supply chain shocks caused…
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