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Hot dog eating champs seek to repeat in Nathan’s Famous contest

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Hot dog eating champs seek to repeat in Nathan's Famous contest

NEW YORK (AP) — The Nathan’s Famous hot dog eating contest marks the United States’ 250th birthday with chomp and circumstance Saturday after an eventful year for the annual wiener showdown and one of its stars.

Contest sponsor Nathan’s Famous was sold in January to packaged meat giant Smithfield Foods. A few months later, reigning men’s champ and record-holder Joey Chestnut was accused of slapping a man in an Indiana bar and pleaded guilty in April to a misdemeanor battery charge.

But the frankfurter fest rolls on, with Chestnut and Miki Sudo set to defend last year’s wins in the men’s and women’s divisions, respectively.

Competitors consume as many hot dogs and buns as possible in 10 minutes, usually dunking the wieners in water first to make them easier to swallow.

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Sudo is an 11-time winner and holds the women’s record of 51 dogs.

Chestnut has taken the so-called Mustard Belt 17 times and notched the men’s record: 76 franks. He’s still on probation in the battery case but is allowed to travel outside Indiana. His lawyer has said that what happened in the bar was a misunderstanding and that Chestnut accepted responsibility for his actions.

Hot dog contest organizer Major League Eating, which oversees the Nathan’s Famous contest, said the criminal case didn’t affect Chestnut’s eligibility for the competition.

The event, which dates to 1972, is held in front of the original Nathan’s Famous’ restaurant in New York’s Coney Island.

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Funeral for slain Iranian leader Ali Khamenei begins as mourning millions chant ‘Death to America!’ and ‘Revenge, revenge!’ in Tehran

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Mourners flooded the streets of Tehran as funeral ceremonies for Iran's supreme leader Ali Khamenei officially began on Saturday

Mourners flooded the streets of Tehran as funeral ceremonies for Iran‘s supreme leader Ali Khamenei officially began on Saturday, amid chants of ‘death to America!’ over his killing.

Iranian authorities say they anticipate between 15 and 20 million participants in the capital alone over the next three days for tributes to the man who ran the country for 36 years.

Six days of funeral ceremonies are planned to commemorate Khamenei, who ruled the Islamic republic as its number one from 1989 until his killing aged 86 on the first day of the US-Israeli war with Iran on February 28.

Intelligence analysts are likely to look for any signs of Khamenei’s son and successor Mojtaba Khamenei, who was named supreme leader a week after the killing of his father but is yet to appear in public.

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Iran chose July 4, the 250th anniversary of the creation of the US, to begin the funeral.

Thousands of mourners carrying flags and red banners – a symbol of vengeance – were seen gathering in the courtyard of Tehran’s vast Grand Mosalla religious complex waiting for the arrival of Khamenei’s coffin.

Meanwhile billboards across the city bore Khamenei’s image.

Crowds of men rhythmically beat their chests in mourning, a common practice at Shiite funerals. 

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When it arrived, authorities unveiled the casket containing Khamenei’s body in a glass case. Mourners wept at the sight, with some chanting ‘death to America’ and ‘our word is one! Revenge! Revenge!’ 

Some mourners were reported to have walked several kilometres to reach the venue. Hundreds of supporters of the Islamic republic were already waiting on Friday evening outside the Grand Mosalla.

Mourners flooded the streets of Tehran as funeral ceremonies for Iran’s supreme leader Ali Khamenei officially began on Saturday

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Thousands of mourners carrying flags and red banners - a symbol of vengeance

Thousands of mourners carrying flags and red banners – a symbol of vengeance

Crowds gathered in the courtyard of Tehran's vast Grand Mosalla religious complex awaiting the arrival of Khamenei's coffin

Crowds gathered in the courtyard of Tehran’s vast Grand Mosalla religious complex awaiting the arrival of Khamenei’s coffin 

Thousands of Iranian women, all wearing black chadors, gathered with banners and flags

Thousands of Iranian women, all wearing black chadors, gathered with banners and flags

The area around the complex was awash with flags and banners as the ceremony began

The area around the complex was awash with flags and banners as the ceremony began

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Millions are expected by authorities to flood the streets of Tehran over the coming days

Millions are expected by authorities to flood the streets of Tehran over the coming days 

A mourner carries flowers and a portrait of slain Iranian Supreme Leader Ayatollah Ali Khamenei with a child

A mourner carries flowers and a portrait of slain Iranian Supreme Leader Ayatollah Ali Khamenei with a child

The casket containing Khamenei's body has gone on display in a glass case with his black turban atop it

The casket containing Khamenei’s body has gone on display in a glass case with his black turban atop it

Other relatives killed in the strikes alongside Ayatollah Ali Khamenei will also be buried, including Ali Khamenei's infant granddaughter and Mojtaba Khamenei's late wife

Other relatives killed in the strikes alongside Ayatollah Ali Khamenei will also be buried, including Ali Khamenei’s infant granddaughter and Mojtaba Khamenei’s late wife

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‘I am here to say goodbye to my beloved leader Ali Khamenei,’ said a weeping Hananeh Mousavi, 27, who attended the funeral alongside her mother. ‘I never expected to see such a day. I wish I had died before this tragedy.’ 

Fellow mourner Somayye Hamedi said: ‘We want to say a final goodbye to our leader, which is why waiting like this isn’t painful or difficult for us.’ 

‘We attended the funeral to show that we are all committed to defend our country and religion,’ said Ali Kazemi, who came from the northwestern city of Tabriz, some 530 kilometers (330 miles) away from Tehran. 

An outdoor stage set up at the Grand Mosalla resembled the stage where Khamenei once gave his speeches at a husseiniyah at his compound in downtown Tehran. 

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That site was destroyed in the Israeli airstrike that killed Khamenei and some of his family at the start of the Iran war on Feb. 28. 

The caskets of his dead family members sat beneath his, which had his black turban atop it, identifying him as a direct descendent of the Prophet Muhammad.

Significant security measures have been imposed, with roads blocked and airspace expected to be closed for what is set to be the largest-scale public event in Iran since the burial of Khamenei’s predecessor Ruhollah Khomeini in 1989.

Six days of funeral ceremonies are planned to commemorate Khamenei, who ruled the Islamic republic as its number one from 1989 until his killing aged 86 on the first day of the US-Israeli war with Iran on February 28

Six days of funeral ceremonies are planned to commemorate Khamenei, who ruled the Islamic republic as its number one from 1989 until his killing aged 86 on the first day of the US-Israeli war with Iran on February 28

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The funeral ceremonies began on Saturday at the grand Mosalla Mosque in Tehran

The funeral ceremonies began on Saturday at the grand Mosalla Mosque in Tehran

Mourners chanted and held up banners calling for 'revenge' and 'death to America!'

Mourners chanted and held up banners calling for ‘revenge’ and ‘death to America!’

A woman holds up an image of US President Donald Trump with a target and the words 'there will be blood' in a call for revenge over Khomeini's killing

A woman holds up an image of US President Donald Trump with a target and the words ‘there will be blood’ in a call for revenge over Khomeini’s killing

Some mourners were reported to have walked several kilometres to reach the venue

Some mourners were reported to have walked several kilometres to reach the venue

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The funeral is set to be the largest-scale public event in Iran since the burial of Khamenei's predecessor Ruhollah Khomeini in 1989

The funeral is set to be the largest-scale public event in Iran since the burial of Khamenei’s predecessor Ruhollah Khomeini in 1989

Mourners were seen holding their heads and beating their chests during the farewell ceremony

Mourners were seen holding their heads and beating their chests during the farewell ceremony

The coffin will lie in state until Monday, when a procession will pass through Tehran. On Tuesday it will move to the clerical hub of Qom, before moving on Wednesday to cities holy to Shia Muslims in neighbouring Iraq, then proceeding for burial on Thursday in Khamenei’s home city of Mashhad in northeastern Iran.

Officials who survived the war showed their grief and displayed a united front on Friday, with parliament speaker and top negotiator in the US talks Mohammad Bagher Ghalibaf visibly tearful.

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Top Iranian officials paying their respects included Ahmad Vahidi, who was named chief of the powerful Revolutionary Guards after his predecessor was killed in the same strikes that killed Khamenei but had not been seen since.

The coming days will be closely watched for signs of Mojtaba Khamenei, who has communicated only by written statements and is said to have been wounded in the same strikes, though the extent of his injuries was never made clear.

Other relatives killed in the strikes will also be buried, including Ali Khamenei’s infant granddaughter and Mojtaba Khamenei’s late wife.

International guests paying respects on Friday included Pakistani Prime Minister Shehbaz Sharif, whose country has been mediating between Iran and the US, and Russian ex-president Dmitry Medvedev, now deputy head of the Russian security council, who attended on behalf of President Vladimir Putin.

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International guests paying respects on Friday included Russian ex-president Dmitry Medvedev, now deputy head of the Russian security council, who attended on behalf of President Vladimir Putin

International guests paying respects on Friday included Russian ex-president Dmitry Medvedev, now deputy head of the Russian security council, who attended on behalf of President Vladimir Putin

Pakistani Prime Minister Shehbaz Sharif, whose country has been mediating between Iran and the US, was also in attendance at a farewell ceremony on Friday

Pakistani Prime Minister Shehbaz Sharif, whose country has been mediating between Iran and the US, was also in attendance at a farewell ceremony on Friday

The Taliban government in Afghanistan was also represented at Friday's ceremony

The Taliban government in Afghanistan was also represented at Friday’s ceremony

Turkish representatives, including Vice President Cevdet Yilmaz, (centre) also attended

Turkish representatives, including Vice President Cevdet Yilmaz, (centre) also attended 

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Palestinian militant group Hamas and Lebanese Shia group Hezbollah, both backed by Tehran, were also represented, as was the Taliban government in Afghanistan.

After five weeks of fighting, the Middle East conflict is on hold following an initial accord between Iran and the US. But Iranian officials have warned Tehran is ready to resume fighting if needed.

‘The nation’s call for vengeance must ring in the ears of the whole world,’ said Ghalibaf, who urged Iranians to turn out en masse.

Army chief Amir Hatami vowed Israel and the US ‘will pay for the blood of the martyred leader and all the nation’s martyrs’.

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But authorities will also want the event to go smoothly, deeply aware of the risk of crowd crushes, which have marred similar events in the past, with TV broadcasting guidelines on how to stay safe.

With temperatures well over 35 degrees Celsius (95 degrees Fahrenheit) expected over the next few days in Tehran, tankers were stationed to spray water on the roads to cool down attendees.

Ahead of the ceremonies, media sources reported that Tehran was quieter than usual with many normally busy streets free of the capital’s notorious traffic.

As the official mourning period began, US President Donald Trump gave a speech in South Dakota in front of Mount Rushmore.

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‘We knocked the hell out of Iran’, he began. ‘They want to settle so badly. We gave them a week off for a funeral.’

The American president was not forgotten in Tehran. 

In the crowd in Grand Mosalla, several mourners held a large flag that read: “#KillTrump.”

Meanwhile Israel’s repeated threats to kill Mojtaba Khamenei drew a warning from Iran’s joint military command Thursday, which told Israel and the US ‘to avoid any miscalculation’ over the coming days. 

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Tributes left at Clifton Country Park after death of 15-year-old boy

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Tributes left at Clifton Country Park after death of 15-year-old boy

A week on from the tragedy, flowers were left at the scene at Clifton Country Park along with tributes to a young man affectionately known as “Leon the Champion” and “King Leon.”

Police officers have said previously that there are no suspicious circumstances in connection with the incident.

Speaking earlier this week, Detective Inspector Dave Ogden from Salford CID said: “Saturday’s incident is truly heart-breaking, and my thoughts remain with the family and loved ones of the young boy who has so tragically lost his life.

“While we are satisfied there are no suspicious circumstances, this incident is an incredibly upsetting reminder of the serious risks associated with open water.

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Tributes have been left at the scene were a boy tragically died (Image: Phil Taylor)

“We understand people want to make the most of the warm weather, but we would urge everyone to stay safe and avoid entering reservoirs, rivers, canals, or ponds.

“Please take care and enjoy the weather in a safe way.”

Officers confirmed on Monday, June 29, that after a three-day search at Clifton Country Park, a popular visitors’ destination in the region, they had found a body at the scene.

The tragedy occurred at Clifton Country Park in Salford (Image: Phil Taylor)

His body was eventually found and recovered by the North West Under Water Search and Marine Unit.

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They had been called to the scene after a 15-year-old boy was believed to have entered the water and got into difficulty on Saturday, June 27.

Firefighters from Greater Manchester Fire and Rescue Service were also called to the scene along with paramedics from the North West Ambulance Service.

Flowers and messages have been left at the scene (Image: Phil Taylor)

Salford City Council confirmed earlier this week it was cooperating with an investigation into the incident.

A spokesperson said: “We’re aware of the devastating news that a body has now been recovered by emergency services, following the tragic incident at Clifton Country Park.

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“Our thoughts are with the family and loved ones of the individual at this extremely distressing time.”

Members of the public have been urged to always call 999 in the event of an emergency as soon as it is safe to do so.

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Moston police issue image and appeal amid investigation

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Manchester Evening News

The man could have important information, police say

Officers have released a CCTV image amid an investigation in north Manchester. Greater Manchester Police says it was called out to reports of an attempted burglary on Carron Avenue, in Moston, on Wednesday (July 1).

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An investigation has been taking shape in the last few days. GMP released an image showing a man they wish to speak to on Friday evening. Anyone with information that could assist police is urged to come forward.

A GMP Manchester North spokesperson said: “Officers would like to speak with the man pictured as they believe he could help with an ongoing investigation. We were called to reports of an attempted burglary at an address on Carron Avenue in Manchester on Wednesday, July 1 2026.

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“Anyone with information is asked to contact police on 101 or via https://orlo.uk/lL7xm, quoting crime reference CRI/06A1/0013303/26. Alternatively, the independent charity Crimestoppers can be contacted anonymously on 0800 555 111.”

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York – fire on Tang Hall cycle path sparked deliberately

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Bus fire on A64 at Tadcaster - emergency services called in

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World Cup 2026: England booed on arrival at Mexico City hotel

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near the England team's hotel before their arrival for their World Cup last-16 game with Mexico in Mexico City

England were booed as they arrived at their Mexico City hotel to prepare for their World Cup last-16 game against Mexico.

England face the tournament co-hosts on Sunday (01:00 BST, Monday), a match which will be shown live on BBC One and iPlayer.

There is increased security at England’s hotel after Ecuador, whom Mexico played in the last 32 in Mexico City, lodged a noise complaint with Fifa.

Ecuador players were deliberately kept awake by local supporters, who used loudspeakers, horns and motorcycles outside the team hotel late at night.

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Mexico went on to win 2-0.

Ecuador stayed in the Westin Hotel and England wanted to keep their location undisclosed, but there were concerns that the location would be leaked.

Hundreds of locals were waiting outside their hotel as the team coach arrived on Friday, with some chanting “Mexico” and others booing.

Members of Mexico’s National Guard lined the entrance to England’s hotel, while police officers in riot gear stood next to barriers on the road outside the hotel.

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UK airline Eastern Airways to disappear after 29 years

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UK airline Eastern Airways to disappear after 29 years

Eastern Airways, which operated regional services from airports across the UK, entered administration at the end of last year.

The firm suffered financial difficulties after the loss of a contract with airline KLM.

Now, a potential rescue deal for the company and its affiliated company, Air Kilroe, has fallen through.

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When did Eastern Airways enter administration?

Eastern Airways suspended operations at the beginning of November, with all operated flights cancelled.

Selina Chadha, Consumer & Markets Director at the UK Civil Aviation Authority, said at the time: “We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled.

“Eastern Airways customers should visit the Civil Aviation Authority’s website for the latest information.”

Eastern Airways was founded in 1997 and was headquartered at Humberside Airport near the village of Kirmington in North Lincolnshire.

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The airline operated domestic, international and private charter flights, with more than a million passengers flying with the airline per rolling year.

It provided 200 flights per day and employed around 330 staff members at its peak, and as well as routes across the UK, it also had some routes to Ireland and Europe.

The airline also had its own hubs in Aberdeen and Humberside.

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Eastern Airways to disappear after 29 years as rescue deal fails

A potential rescue deal for Eastern Airlines, and its affiliated company Air Kilroe, has now fallen through, meaning administrators are unable to save the airline.

Administrators RSM UK are now set to break up and sell the businesses’ assets separately, according to a report from The Sun.

A joint sale of Eastern and Air Kilroe had been looked at, as the companies had operated under a single business.

At the time the business collapsed, RSM said “high fixed overheads” and its staff base had “ultimately proved too high to be sustainable”.

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Jamie Miller, partner at RSM UK and joint administrator, said at the time: “The unexpected and sudden termination of Eastern’s KLM contract, along with other economic factors, unfortunately left the directors with no choice but to appoint administrators.”

Now, all nine of Eastern Airways’ aircraft fleet have been sold, along with plane parts and components.

Airlines and travel companies that have gone into liquidation or administration in 2026

Four UK airlines have fallen into administration or liquidation this year:

Several airlines also entered liquidation in 2025, according to the UK Civil Aviation Authority, including:

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  • Blue Islands Limited (UK)
  • Air Kilroe Limited t/a Eastern Airways (UK)
  • Play Airlines (Iceland)

Several travel companies have also entered administration this year, including:

Luxury UK holiday company Salamander Voyages shut down back in April after entering administration.

Just last month, Groupia Ltd, which also trades as Groupia Golf, GoHen, StagWeb, Groupia School Trips, and Company Away Days, also fell into administration.

It offered customers “the best” group travel holidays to destinations in the UK and abroad, including Prague, Split, and Barcelona.

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More than 750,000 travellers have used the company since it began back in 2002, booking everything from stag and hen weekends to golf trips, team tours, and spa breaks.

After 24 years in business, Groupia, which is based in Bath, has now fallen into administration.

Nigel Fox and Christopher Marsden of S&W Partners LLP were appointed joint administrators on June 16, according to the Groupia website.

It continues: “The Company has now ceased taking new bookings, and arrangements are in place with ABTOT to support customers with existing bookings.”

Bookings on or before August 31, 2026, are expected to go ahead as planned, the Groupia website says, thanks to an arrangement with ABTOT (financial protection company).

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Any holidays booked with Groupia for after September 1, 2026, have been cancelled.

Have you been affected by any airline or travel company closures so far this year? Let us know in the comments.

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Taylor Swift’s friend Lena Dunham leaves wedding guests gasping with X-rated speech

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Daily Mirror

Taylor Swift and Travis Kelce tied the knot in New York on Friday surrounded by a whole host of famous faces, including Emmy Award nominee, Lena Dunham

Taylor Swift’s wedding party was left gobsmacked as Lena Dunham turned the air blue at the lavish reception. The Bad Blood Billionaire, 36, tied the knot with Kansas Chiefs star, Travis Kelce, also 36, in New York on Friday, surrounded by a whole host of famous faces.

The guest list for the showbiz wedding of the year was kept strictly under wraps. However, Girls star, Lena Dunham – who is best pals with Taylor – was not only on the invite list but was also asked to make a speech at the reception in Maddison Square Garden.

Insiders have revealed that Lena made an X-rated speech while the toast of Tinseltown’s jaws dropped at some of her observations.

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Referencing groom Travis’ American football career, the actress, who had Taylor as a bridesmaid for her wedding in 2021, allegedly joked that the sport was “just straight guys re-enacting gay porn” in front of all of the newlyweds’ family and friends – who included several NFL stars.

According to the Mail, gasps could be heard from the well-heeled guests in the Big Apple, which included actor Bradley Cooper, model, Gigi Hadid – and NFL icon, Tom Brady.

The source claims that while there were “lots of speeches,” but Lena became one of the biggest talking points of the night, as her jokes drew a “divided” response from guests who responded with a combination of “gasps and laughs.”

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Taylor, who has been pals with Lena for years, is said to have seen the funny side of the crude gag and apparently called the Emmy Award nominee a “genius” after her speech.

Taylor and Lena have been pals for more than a decade, with Taylor a bridesmaid at Lena’s wedding to musician Luis Felber in 2021.

Lena also dedicated her 2026 memoir Famesick to the Love Story singer, writing in her dedication: “TayTay — you sing the songs I wrote this book to… and yet somehow, miraculously, you also pick up every desperate call at every desperate hour”.

Speaking to People previously about their friendship, the Too Much creator shared: “It’s a crazy thing, because she’s one of my best friends in the world but she’s also my favourite music.”

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New York was transformed for Taylor and Travis’ big day, with huge billboards surrounding Madison Square Garden revealing the moment they became Mr and Mrs, giving excited fans outside the chance to celebrate with the happy couple.

Taylor’s brother, Austin, served as her Man of Honour, while Travis’ brother, Jason, was his Best Man and actor, Adam Sandler, officiated the wedding.

However, one famous face who was not at the nuptials was Taylor’s former BFF, Blake Lively. The girls were once so close that Taylor is godmother to Blake’s four children, James, Inez, Betty and Olin, whom she shares with Ryan Reynolds. Taylor also included the names of Blake’s children in her songs on folklore, as a special nod to her friend.

However, amid Blake’s legal battle with Justin Baldoni, she and the Bad Blood star appear to have fallen out, with the It Ends With Us actress reportedly ‘snubbed’ from the TayTay’s star-studded wedding.

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For more of the latest showbiz news and gossip, follow Mirror Celebs on TikTok , Snapchat , Instagram , Twitter , Facebook , YouTube and Threads .

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Alternative for Germany party convention to elect leaders as opponents protest

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Alternative for Germany party convention to elect leaders as opponents protest

ERFURT, Germany (AP) — Thousands of protesters aimed to disrupt the national convention of Germany’s far-right Alternative for Germany party on Saturday, with some clashing with police in riot gear outside the meeting.

Alternative for Germany, or AfD, is meeting in the eastern city of Erfurt to elect its leaders, which German parties do every two years. The party seeks to show unity while extending the terms of leaders Alice Weidel and Tino Chrupalla, who have run the party together for four years.

The demonstrations outside the convention reflect how AfD has divided Germany even as it is the nation’s biggest opposition party nationally.

The weekend convention has drawn additional controversy by coinciding with the 100-year anniversary of a Nazi Party meeting held nearby that consolidated Adolf Hitler’s power over the fascist movement. Historians and political opponents say the timing carries powerful symbolism, an accusation the AfD rejects.

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Weidel said recently that “2026 is a year of destiny for AfD.” Mainstream parties say they won’t work with it, a stance often known as a “firewall.”

But AfD is capitalizing on the unpopularity of a government that is trying to reform the sluggish economy. The party has become adept at harnessing discontent with issues well beyond its signature theme of curbing migration, which powered its rise in the mid-2010s.

AfD hopes to win 40% or more of the vote in a Sept. 6 state election in the eastern region of Saxony-Anhalt. That could put the party on course for an absolute majority or in a position where it might try to attract defectors from other parties, paving the way for its first state governor.

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Police uncover suspected drugs and guns stash in Openshaw

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Police uncover suspected drugs and guns stash in Openshaw

Officers from Greater Manchester Police’s Operation Venture team and other specialists had tracked a suspicious moped to Openshaw using a drone on Tuesday, June 30.

There, they arrested four people, three men and a woman, and found what they say is a range of suspicious items.

Inspector Joe Barron, from GMP’s Operation Venture team, said: “This was an excellent joint operation by several different teams, resulting in seven vehicles being seized and thousands of pounds’ worth of drugs being recovered.

“Our officers are always looking to proactively tackle issues across the Manchester area, and this is a case which has produced significant results thanks to that hard work.

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Some of the seized bikes (Image: GMP)

“I would urge anyone with any information about drug supply in their area or, likewise, any suspicions regarding stolen bikes or similar, to please get in touch with us.”

Officers found four motorbikes, including a Surron, and three off-road style bikes in the shed, as well as a suspected stolen quad bike in the front garden.

A duffel bag was also found containing suspected Class A drugs, including heroin and cocaine, while what appeared to be ammunition for a handgun and a knuckle duster were also found.

Officers say five pit bull or XL Bully type dogs were also seized for further assessment.

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Three men and a woman, aged 19 to 45, were arrested on suspicion of possession with intent to supply Class A drugs, possession of offensive weapons, and handling stolen goods.

They remain in custody for questioning.

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How economic pressures are damaging Britain’s ‘zombie firms’

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How economic pressures are damaging Britain’s ‘zombie firms’

The UK’s borrowing costs are higher than the government would like them to be. Economic growth remains weak, and public finances are under constant pressure.

All of this make things difficult for pretty much everybody. But one particularly vulnerable group are the small businesses which survive mainly through continued borrowing.

Known as “zombie” firms, these are companies with persistently weak profitability which struggle to generate enough income to cover their debt costs over long periods of time.

Recent evidence suggests that the pressures on these companies are becoming more acute. Around one in six medium sized businesses in the UK is thought to be at risk of becoming a zombie firm.

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And some sectors are more vulnerable than others. Businesses operating in leisure and hospitality, for example, often need substantial amounts of external finance to support tight margins, leaving them particularly exposed when borrowing costs rise.

But the worry is not simply that borrowing has become more expensive. It is that a combination of higher refinancing costs, weaker growth and geopolitical shocks could really damage firms that were already financially vulnerable.

The current pressure on firms is coming from several directions. One is the sharp increase in long-term borrowing costs across the UK economy.

In May 2026, the cost of borrowing for the UK government rose to its highest level in almost three decades after bond markets reacted to worsening tensions in the Middle East and the possibility of renewed inflationary pressure. Borrowing then tends to become more expensive for businesses as well.

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But not all companies are affected equally. Large firms with strong balance sheets (like a bank or a big pharmaceutical firm) may be able to absorb higher financing costs relatively easily. Companies already carrying high debt and weak profitability are much more exposed.

Many firms borrowed heavily during the long period of exceptionally low interest rates that followed both the global financial crisis of 2008 and COVID. As those loans now mature, refinancing them becomes significantly more expensive. For some businesses, that shift may prove difficult to manage.

Zombie apocalypse now?

The rise in UK borrowing costs is closely tied to geopolitical developments.
Escalating tensions in the Middle East have increased fears of disruptions to energy supplies and shipping routes, particularly around the Strait of Hormuz and the Red Sea. Higher oil prices can feed quickly into inflation through fuel, transport and production costs.

Businesses that were already struggling with narrow profit margins may now face a devastating combination of higher refinancing costs, rising energy and transport bills, as well as weaker consumer demand and tighter lending conditions.

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On their own, any one of these pressures might be manageable. Together however, they create the kind of environment in which financially fragile firms can quickly come under strain.

COVID led to cheaper borrowing.
1000 Words/Shutterstock

Smaller businesses are likely to face the greatest pressure because they depend heavily on bank lending and often operate with limited financial buffers.

Unlike large corporations, many small and medium-sized enterprises cannot easily raise money through financial markets. Their survival is closely tied to bank lending conditions and day-to-day cash flow.

But British banks may become more cautious as economic uncertainty rises. If lenders become less willing to refinance weaker companies, some firms that survived during the era of cheap credit could struggle to continue operating.

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There is also evidence which suggests that prolonged periods of cheap borrowing can allow financially weak firms to survive longer than they otherwise would have. Some economists argue that this can reduce productivity by trapping labour and capital in inefficient businesses.

The current environment may therefore become a test of which firms remain viable once borrowing costs stay higher. The recent surge in UK borrowing costs is often discussed as a problem for government finances. But it may also signal something broader about the post-crisis economic model that dominated much of the past decade.

For years, exceptionally low borrowing costs helped support companies through periods of economic stress. Now that financing conditions are tightening again and geopolitical uncertainty is rising, some firms may find that survival becomes much harder.

That does not necessarily mean a sudden wave of collapses is imminent. Many businesses remain fundamentally healthy.

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But the combination of higher refinancing costs and external shocks could increasingly expose firms whose survival depended on the unusually cheap borrowing conditions of the past decade. If that happens, the demise of zombie firms may start to become a much more visible feature of the UK economy.

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