The number of “zombie” companies is on the rise in the UK and not only are they eating away at economic growth, accountants are increasingly dealing with the consequences.
Speaking at the recent AIMS Accountants For Business conference in Gatwick, Alan Limb and Peter Windatt of BRI Business Recovery and Insolvency said there were now 150,000 zombie companies out there and the rate of failure among them was at an all-time low.
“These are companies that are not going anywhere. They’re hanging on by skin of their teeth, they’ve sold the family silver and therefore there is nothing left to liquidate,” Windatt said.
“The turnaround of one through a pre-pack could mean the death of others.”