Originating in Wuhan, China, in December last year, coronavirus COVID-19 is now spreading around the world at a seemingly unstoppable rate. As infection levels are growing on a daily basis, so is the impact on businesses.
Jonathan Munnery, partner at leading corporate rescue and recovery firm, Real Business Rescue, commented:
“If the virus continues to spread at current rates, the impact on businesses across the country, and indeed the globe, cannot be overstated.
“The main problem facing business in the UK at the moment is that of uncertainty. No one knows for sure how long the Coronavirus crisis will last, nor how severe the repercussions on businesses could be; it is this uncertainty which is shaking confidence.
“Widespread and lengthy factory closures across China have the potential to cause severe disruption to businesses worldwide that rely on Chinese manufacturers for both components as well as finished goods.
“While the majority of companies in the UK may currently be trading as normal, using products already held in stock, there are fears these stock reserves will eventually run out as the global supply chain becomes increasingly depleted and the flow of products from China stalls.
“Although current concerns may be centred on supply chain disruption, focus could soon turn to a slowing of demand as forced closures of schools, workplaces, and the curbing of travel becomes an ever-increasing possibility.
“In uncertain times, the only thing we know for sure is that it looks set to be a challenging few months for businesses up and down the country who have found themselves unwittingly caught up in the coronavirus crisis. Real Business Rescue have issued information on company liquidation for businesses already exhibiting signs of financial distress, or those that have concerns about whether their company can survive until conditions improve.”