Blog: Food firms vulnerable to financial problems
Catherine Sleep | 21 September 2004
Companies trading in the food and drink manufacturing sector are one of the most likely industry types to be unable to meet financial obligations, a UK credit reference agency claims. ICC Credit trawled through its database of more than four million limited and unincorporated firms to identify the types of business most likely to default on payment, and food and drink companies were found to be way up there.
The company said that one in eight firms has experienced severe financial difficulty. Unsurprisingly, the coal mining sector was even worse hit, with 25.7% of firms unlikely to be able to pay.
Does this surprise us? We’re traditionally told that food firms are fairly recession-proof (because even when times are hard, you still gotta eat) and offer a safe haven for investors, but perhaps these days that philosophy applies more to retailers than to manufacturers.
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