Coronavirus: ICSM Credit issues warning as outbreak takes first company scalp

The growing threat of the coronavirus crisis has emerge with the outbreak taking its first scalp with the news that the collapse of Fly365 has been blamed on the outbreak.
The Australian based online flight booking firm has gone into administration leaving customers out of pocket and sending shockwaves through the travel industry.
With links to the collapsed budget airline firm Bestjet which failed to repay their customers the omens are not good for the online flight booking company. It was set up by the wife of the owner of Bestjet and having wiped its website of information has gone into voluntary liquidation blaming the coronavirus crisis as customers cancel flights.
“This is just the first red warning light for the travel industry,” said ICSM Credit’s Ian Carrotte. “If you look at the markets everywhere from Tokyo to New York they are down. Car sales have collapsed in China, parts coming from the People’s Republic have ground almost to a halt and every sector is going to be hit soon. It’s started with the travel industry - and with such small margins it is no surprise we’ve seen the first casualty.”
He said firm’s must not take it for granted that long term clients in the travel industry or who rely on parts and products coming from China are safe.
“The situation is going to get worse before it gets better,” he said, “so keep a tight credit control and keep in touch with fellow members of ICSM Credit who are usually the first to hear of potential bad news.”
Ian Carrotte said the travel industry is susceptible to emergencies like coronavirus as people either voluntarily stop travelling or are banned by the authorities.
Last year Thomas Cook went bust and this winter FlyBe almost went under but were saved by a Government intervention.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk

Picture: Business Insider