Yet another local electrical contractor of many years standing has hit the wall. Rumours abound with some saying they went for £5M. What I do know for sure is that a labour only sub has been hit for £200K with a fairly well-known firm of consultants not far behind. Seems the same old story is set to go on running.
As long as people try to run businesses, the ones who are poor at it, will fail at some point.
Some, try to get as much out in as short a time as possible before the collapse.
It needs to be much harder to close a company in heavy debt; in this country (by which I mean in the UK) it is too easy to do.
I think a financial audit of where the money has gone should be mandatory for any company going out of business with debts, to decide where all of the money has gone - if its easy to see how bad business has done the company in, then fine, but if the money has been siphoned off by top management and shareholders, then not so fine. The costs for this audit however are not so easy to asign or pay for.
As long as people try to run businesses, the ones who are poor at it, will fail at some point.
Some, try to get as much out in as short a time as possible before the collapse.
It needs to be much harder to close a company in heavy debt; in this country (by which I mean in the UK) it is too easy to do.
I think a financial audit of where the money has gone should be mandatory for any company going out of business with debts, to decide where all of the money has gone - if its easy to see how bad business has done the company in, then fine, but if the money has been siphoned off by top management and shareholders, then not so fine. The costs for this audit however are not so easy to asign or pay for.
