Collapse of zombie firms ‘shows pick-up in the wider economy’
The number of companies collapsing into administration surged to its highest level for nearly two years at the end of 2013 as a raft of so-called “zombie” firms hit the wall in the run up to Christmas.
He said a painful, but necessary “cull in zombie businesses” was under way as firms that have failed to invest in their businesses during the recessionary years or have survived by servicing interest only bank loans struggle to compete in the new economic conditions.
He added: “Companies have been addressing their stressed balance sheets by using administration as a restructuring procedure to reposition their business model to benefit from the recovering economy.”
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