Recession weeds out ‘bad companies’

By Jessica Stanic · 15 May 2009 · News

Recession Exposes Business Weakness

A recession can be a ‘cleansing process’ according to a top business leader, but what does this mean for struggling companies? Find out how the economic downturn is separating the strong from the weak.

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Summary

Former Woolworths chief executive Roger Corbett has said that a recession can act as a “cleansing process” by weeding out the bad companies and separating the strong from the weak. Mr Corbett, a board member of the Reserve Bank of Australia, said that the recession weeds out bad companies that should be allowed to fail. […]