Steve Frobisher, head of turnround services at PA Consulting Group, has contributed to a Financial Times article on the outlook for the UK following the financial crisis. Steve commented that the road to recovery will be a long and hard journey.
Steve says the financial crisis has given birth to “zombie banks, zombie governments, zombie companies and zombie consumers”, which are not quite dead but not fully alive.
Steve goes on to predict that even recovery in the UK will feel like recession, with high rates of corporate insolvency and unemployment continuing for some time.
Despite corporate insolvencies hitting record highs, Steve says that a lot of the companies that need turning round are being hidden away by the banks. “Banks have balance sheets stuffed full of toxic assets that they still pretend are not toxic.”
“We have seen fewer fire sales and fewer liquidations than might have been expected.”
You can read the article in full here