Are UK Zombie Companies Going To Kill The Change Of Recovery?

Brett Alegre-Wood
September 22, 2020

"Zombie" companies are multiplying in the uK they say. Is it good or bad for the economy?

More media is talking about UK Zombie companies that may kill off any chance of a recovery. But are they real, Do Zombies really exist? Will they stop the economy or has all the stimulus meant that more of these will survive and eventually thrive?

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Are we going down? Are we going up? Are we sitting where we are? Are we going to have unemployment? Is inflation going to hit us?

All these questions and so what I want to do in this segment is really cover the news as it is right now and where it's tracking. I think really the the key here is there's a lot of data coming out there's a lot of articles coming out you know one I was reading today and I've been sort of following this which is the "zombie" companies.

"Zombie" companies are multiplying the UK and that's bad news for the economy the think tank says. So think tank and they think tank is onward. Interestingly and I always whenever somebody makes a comment or a commentary or something I'd always look to who they are and what they're doing. And this is a center of right thinkers and leaders you know so you know this is gonna you know this would be very business minded. 

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I think the key here with this is they're saying that potentially one in five but as I was doing the research there's one in seven, there's one in three all different people have their different opinions you know. But I do think there is "zombie" companies and "zombie" companies because the furlough scheme. "Zombie" companies because of the bounce-back loans were given out without any criteria. So i think this there is some merit to this.

Bottom line is look you know the "zombie" company side of things really is very much a topical issue. And what we may see is when the furlough drops and when all the government some city goes away you may see these businesses that perhaps weren't any good before that actually fallen over now or in industries that are now defunct or heading in the wrong way.

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This is happening a lot and what's happened these "zombie" industries with companies were there before so it's not that they all of a sudden just come because of the recession. Actually they come for you know much more than that okay so basically you know i think one of the key things here is yes you know there are "zombie" companies. And one of the key distinctions here is that i think if you look at the the criteria, the criteria is varied about what a "zombie" company is you know so you know how do you know what a zombie company is? I mean I might be running a zombie company by some of the criteria you may be working for a zombie company by some of the criteria. There's not a fixed criteria it's not you know i mean you can say but it's an insolvent company well actually maybe it's not insolvent maybe it's insolvent now but when recovery happens it won't be insolvent.

So that's you know one of the things that this is one of the fears if lots of companies you know fall over that's going to lead to well effectively redundancies you know. Redundancy floodgates will open says unite union well of course they're going to say that you know right now you know if we look at redundancies there was three hundred thousand predicted now i haven't we haven't had updated figures in June and July.

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Are we going down? Are we going up? Are we sitting where we are? Are we going to have unemployment? Is inflation going to hit us? All these questions and so what I want to do in this segment is really cover the news as it is right now and where it's tracking. I think really the the key here is there's a lot of data coming out there's a lot of articles coming out you know one I was reading today and I've been sort of following this which is the "zombie" companies. "Zombie" companies are multiplying the UK and that's bad news for the economy the think tank says. So think tank and they think tank is onward. Interestingly and I always whenever somebody makes a comment or a commentary or something I'd always look to who they are and what they're doing. And this is a center of right thinkers and leaders you know so you know this is gonna you know this would be very business minded. I think the key here with this is they're saying that potentially one in five but as I was doing the research there's one in seven, there's one in three all different people have their different opinions you know. But I do think there is "zombie" companies and "zombie" companies because the furlough scheme. "Zombie" companies because of the bounce-back loans were given out without any criteria. So i think this there is some merit to this. Bottom line is look you know the "zombie" company side of things really is very much a topical issue. And what we may see is when the furlough drops and when all the government some city goes away you may see these businesses that perhaps weren't any good before that actually fallen over now or in industries that are now defunct or heading in the wrong way. This is happening a lot and what's happened these "zombie" industries with companies were there before so it's not that they all of a sudden just come because of the recession. Actually they come for you know much more than that okay so basically you know i think one of the key things here is yes you know there are "zombie" companies. And one of the key distinctions here is that i think if you look at the the criteria, the criteria is varied about what a "zombie" company is you know so you know how do you know what a zombie company is? I mean I might be running a zombie company by some of the criteria you may be working for a zombie company by some of the criteria. There's not a fixed criteria it's not you know i mean you can say but it's an insolvent company well actually maybe it's not insolvent maybe it's insolvent now but when recovery happens it won't be insolvent. So that's you know one of the things that this is one of the fears if lots of companies you know fall over that's going to lead to well effectively redundancies you know. Redundancy floodgates will open says unite union well of course they're going to say that you know right now you know if we look at redundancies there was three hundred thousand predicted now i haven't we haven't had updated figures in June and July.


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