ICSM Credit latest news: from a pension group to a hotel - the latest company collapses and administrations

If you thought April was a bloodbath for company liquidations and collapses then May looks far worse with only a week gone. By the end of the month the casualties will out-number the whole of 2019 put together if the trends continue.

The latest names to go into administration include the pension group Liberty Sipp who were already under pressure with a string of complaints against the self-invested personal pension provider while 150 jobs have gone as Central Building Contractors, the Glasgow-based construction firm crashes. The George Best Hotel in Belfast has gone bust before it even opened while Prezzo have called in ‘turn-around’ consultants desperately trying to stave off administration. Since Covid-19 hit, numerous restaurant chains including Wahaca and Byron’s Burgers have also called in advisors to help restructure their finances. Previously Carluccio’s and Chiqito’s have gone west while the Belgium eatery Le Pain Quotidien are negotiating a pre-pack.

Beware of firms shopping around for suppliers

Ian Carrotte of ICSM Credit said: “The message is to not allow customers to delay payment using the excuse of the Covid-19 crisis. If people have genuine cash flow problems they need to come clean and outline a payment plan but other than that it must be business as usual in terms of paying invoices.”

He also warned businesses of receiving unexpected orders from new customers. “When a business is refused credit some unscrupulous managers will shop around for a new supplier. Some of the worst offenders are household names who use their name to gain credit from unsuspecting suppliers. Nobody is exempt from insolvency at the moment so be on your guard and if it is a new customer insist on sticking to your trading terms and not giving excess credit.”

The London Gazette has ordered the winding up of the wholesaler Astonall Limited while Axa Insurance plc has been hit by three county court judgements totally around £10,000 while the school sticker people Brainwaves Rewards Limited has had their credit rating slashed to zero.

Airline industry in crisis so don't give credit

Suppliers to airports and most airlines need to think twice over granting extended credit terms as the industry sees massive job losses and a collapse in business. Heathrow has shut Terminal 4, both Virgin Atlantic and British Airways are planning on pulling out of Gatwick while International Airport Review has hinted some airports may have to close for good in the UK.

And while we are on the subject of holidays and travel clearly giving hotels and holiday firms the benefit of the doubt over lapsed payments of invoices is a no-no. Several hotels and holiday firms have already gone but even ones like Airbnb are in trouble cutting 1,900 staff and investments in hotels and resorts as it struggles to survive.

Ian Carrotte said in reaction to the news: “Who could have imagined that six months ago? These are indeed very unusual times.”

ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

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