Home Business NewsBusiness Another 100,000 businesses fall into financial distress due to Covid-19

Another 100,000 businesses fall into financial distress due to Covid-19

by LLB Editor
22nd Apr 21 11:13 am

Almost 100,000 more businesses were significantly distressed in the first three months of 2021 compared with the previous quarter, according to a study by Begbies Traynor.

The analysis found that the number of companies in significant financial distress has risen at the fastest rate in more than seven years.

The figures have raised alarm that “the dam of zombie businesses could be about to break” when government Covid-19 support comes to an end in the summer.

Ric Traynor, executive chair of Begbies Traynor, said: “Despite the unprecedented central government support offered to UK businesses, it is now clear that many companies are struggling under the weight of increased debt combined with poor revenue streams.”

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