ZOMBIE businesses are in the banks’ intensive care units for twice as long as two years ago, and are at serious risk from any interest rate rise, according to a KPMG survey of 400 bankers across the North.
Zombie companies are those that are just surviving but have little room for manoeuvre in the event of any further downturn or any one-off cash issues.
They typically have significant levels of debt, an,d though able to cover their current interest payments, are likely to struggle to repay the capital.
Brian Green, of KPMG, said: “There has undoubtedly been an increase in the number of Northern businesses that are in a zombie state, with the scale of the problem growing.”
