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The Independent UK
The Independent UK
Business
Holly Williams

Tens of thousands of ‘zombie’ firms on brink of collapse, warns report

Tens of thousands of ‘zombie’ firms could go bust in 2026 (PA) - (PA Archive)

Tens of thousands of “zombie” firms could go bust in 2026 as companies come under pressure from tax hikes, rising wage bills and weak consumer demand, according to a report.

The latest quarterly red flag alert report from Begbies Traynor revealed a 44% year-on-year jump in companies in “critical” financial distress in the final three months of 2025, at 67,369.

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