ICSM Credit warning over coronavirus comes to pass immediately as Flybe is grounded

Yesterday ICSM Credit’s Ian Carrotte warned that firms would go to the wall over the coronavirus outbreak as the brakes are put on the global economy.

Last night Flybe went into administration after failing to secure its future with a Government deal to lower costs. There appears to be no chance of a Government rescue plan although the Government said would help the 2,000 plus workers who have lost their jobs to find new work. They believe other airlines may fill the gaps left by Flybe although several airports in the UK rely almost exclusively on Flybe’s trade suggesting more jobs will go.

Ian Carrotte said: “I’m afraid this is just the beginning with a knock on effect from people cancelling travel plans and altering their lifestyles to avoid the virus. My advice is as always to keep a tight grip on credit and not allow clients to pay later than your terms of business. My phone as been ringing constantly since the beginning of the year with members showing concerns over late payments from household names. Don’t forget members can use our free legal letters to chase up overdue invoices – they are very successful and often what keeps a businesses’ cash flow flowing.”

Other firms to go to the wall in the last few days include The Salutation hotel in Kent, Styles & Wood, Print Solutions, Taylor Bloxham, Callimedia, soak.com, Fly365, Beales and Axminster Carpets. Oldham Athletic FC and Brighthouse are on the Brink while Laura Ashley are also in trouble.

Ian Carrotte commented: “Sadly the situation for creditors of household names like Beales and Flybe have little protection and may lose money. No business is safe at the moment so it is vital for members to keep in touch with us. If you are a business and are not members then for less than a tank of diesel join us and protect your operation from bad debts.”

ICSM Credit

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 top left of the home page of 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