Latest news from ICSM Credit: the cold winds of recession sweep the UK and the USA
Ian Carrotte: let's hope it's a V-shaped recession - but prepare for the worst as US retailer JC Penney files for Chapter 11 protection
As unemployment rates in the USA reach nearly 15% of the workforce and the economy takes hit after hit many observers in the UK are predicting a recession worse than the one in 2008.
“Some 80,000 workers for the US retailer JC Penney could lose their jobs,” observed Ian Carrotte of ICSM Credit, “the 118 year old firm that survived the Great Depression has filed for Chapter 11 bankruptcy protection. If they can go bust then so can any of the big names here. Let’s hope it’s a V-shaped recession – but prepare for the worst.
“My advice is to chase up all outstanding invoices as once they call in the administrators suppliers can kiss goodbye to their money.”
His words couldn’t be more pertinent as the UK economy continues to take a nose dive with whole sections of industry in lock down despite the encouraging sounds from government encouraging a phased return to work.
“Last week John Shoes appointed administrators,” said Ian Carrotte, “while Travel Lodge have asked for a rent holiday with most of their hotels empty. But there’s some better news with Smethwick- and Telford-based OfficeTeam has been bought by Paragon Group after Spicers Office Team went into administration.
Also in the news is the retailer Little Black Dress who has been bought in a pre-pack deal by Fashion Ventures after it shut up shop last month.
Elena Cherubini writing in The Grocer reported on how some SMEs were coping with the coronavirus pandemic. She reported on Pippa Murray of peanut and snack business Pip & Nut who had managed to rejig their supply system during the crisis. Pippa told Elena: “My opinion is that it’s better to plan for the worst and hope for the best.”
Bol Foods had seen a 25% slump during the crisis but it launched three new products and expanded into new channels, including a partnership with Addison Lee and Deliveroo across London.
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