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.
I did not mean to pick on small companies in particular. (I'm a small company)
Tier 1 contractors down to small companies - if you go out of business with debts, an investigation should be carried out to show where the money has gone and money recovered if at all possible. (Not for the company that has gone out of business as they'll no longer exist as an entity)
If the company has gone bust because the big company has been delaying payments or not paying - This money might be recovered from above
- the big companies
- or the clients
- or the owners
- or shareholders depending on where the money has gone.
I know full well that's not an easy thing to do though.
It really angers me though when the big companies try to run me out of business (and they have circa 4 times now over the last 13 years). If they had been successful, the wholesaler and my suppliers would then get shafted by me........there should be a way for the debt to be recovered and my wholesaler and suppliers to get paid in that circumstance.
Even worse when the big company goes out of business, this is when the last ditch effort to recover owed debt should include owners, shareholders, top management bonuses etc.
BUT BUT BUT - that's why we own limited liability companies so as the name implies, the debt only is limited to the assets of the company and nothing else (Not my private home, bank account or assets)
So its difficult, I know.
Its also too easy to own multiple businesses and to shut down a single business, leave a load of HUGE debts to suppliers and carry on as if nothing has happened.
Its too easy to open and close a business in a year for example before the tax man catches up to you.
etc.
But the government also wants to encourage us to open and run and grow businesses so they cant stifle that unintentionally.
I did not mean to pick on small companies in particular. (I'm a small company)
Tier 1 contractors down to small companies - if you go out of business with debts, an investigation should be carried out to show where the money has gone and money recovered if at all possible. (Not for the company that has gone out of business as they'll no longer exist as an entity)
If the company has gone bust because the big company has been delaying payments or not paying - This money might be recovered from above
- the big companies
- or the clients
- or the owners
- or shareholders depending on where the money has gone.
I know full well that's not an easy thing to do though.
It really angers me though when the big companies try to run me out of business (and they have circa 4 times now over the last 13 years). If they had been successful, the wholesaler and my suppliers would then get shafted by me........there should be a way for the debt to be recovered and my wholesaler and suppliers to get paid in that circumstance.
Even worse when the big company goes out of business, this is when the last ditch effort to recover owed debt should include owners, shareholders, top management bonuses etc.
BUT BUT BUT - that's why we own limited liability companies so as the name implies, the debt only is limited to the assets of the company and nothing else (Not my private home, bank account or assets)
So its difficult, I know.
Its also too easy to own multiple businesses and to shut down a single business, leave a load of HUGE debts to suppliers and carry on as if nothing has happened.
Its too easy to open and close a business in a year for example before the tax man catches up to you.
etc.
But the government also wants to encourage us to open and run and grow businesses so they cant stifle that unintentionally.
