BusinessBusiness RecoveryDistressed companies only have evens chance of survival

Distressed companies only have evens chance of survival

PwC study shows chances of a rescue are diminished in recession

Ailing companies have only a 50% chance of staying above water in a
recession, thanks to poor treatment from lenders and bad management, a
PricewaterhouseCoopers and Daily Telegraph study has found.

A survey of 150 turnaround specialists also found that banks are reluctant to
help companies restore financial health, and are more likely to resort to
insolvency.

Most at risk are businesses in the automotive, construction, hospitality,
leisure and property sectors, the specialists said. They noted there had been
minor improvement among the retail sector, whose prospects went from ‘very poor’
to ‘poor’.

Managers came under fire for setting up inappropriate capital structures with
too much debt.

Related Articles

Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
PwC must face MF Global lawsuit over accounting advice

Accounting Firms PwC must face MF Global lawsuit over accounting advice

2y Richard Crump, Writer
PwC’s business recovery services team appoints four new partners

Accounting Firms PwC’s business recovery services team appoints four new partners

2y Richard Crump, Writer
MPs call on FRC to widen BHS audit probe into PwC

Accounting Firms MPs call on FRC to widen BHS audit probe into PwC

2y Richard Crump, Writer
FRC investigation launched into PwC's BHS audit

Audit FRC investigation launched into PwC's BHS audit

2y Kevin Reed, Writer
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

2y Fraser Simpson, Reporter
Take part in our 'Seven days in Accountancy' quiz

Accounting Firms Take part in our 'Seven days in Accountancy' quiz

2y Fraser Simpson, Reporter
New consortium enters fray to buy BHS empire

Accounting Firms New consortium enters fray to buy BHS empire

2y Chris Warmoll, Writer