Experts forecast 800+ ‘zombie’ companies to fail in September

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Experts warn more than 800 Aussie businesses could shut up shop in September when Government stimulus payments dry up.

According to the survey, several investment and credit-reporting firms have warned that “zombie companies” – those artificially propped up by temporary pandemic stimulus – could collapse over the next six months as stimulus measures are reduced.

“The people affected will not be the undead, but they will be those who were trying to cross the so-called ‘bridge to the other side’ only to find that they ran out of time.”“Economists aren’t predicting an enormous influx of insolvencies right away in September, but the 800 prediction is deceptive because many expect the worst to come in the months that follow,” he said.

“There will be a serious shock to the economy as people are once again forced to start paying the bills and stop receiving government incentives. But Rich Harvey, CEO and founder of Propertybuyer, said he expects 1400 insolvencies in September as many companies will struggle to “sustain their cost base without government support and low revenue”.

 

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Let zombie companies fail.

sad - but honestly we cant keep borrowing money to prop[ up companies that would otherwise fail

What's a few extra billion $ to save the country from complete collapse?

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Sverige Senaste nytt, Sverige Rubriker