Insolvency and credit warning news: firms entering administration include Hertz, Adelie, Digway Bulk Haulage and Cardiff Container Link while DHL slash jobs and Edinburgh Woollen Mill’s £27m in unpaid invoices
Covid-19 is the bad news story for business that keeps on giving. Lay-offs, company collapses and administrations just keep on coming. Today one of the nation’s largest suppliers of sandwiches to shops, service stations and supermarkets has gone into administration with 2,000 jobs in doubt. Adelie furloughed most of its workers in March when the crisis prevented it from supplying Café Nero and Aldi with BLTs and smoked salmon paninis’.
“It’s a pretty depressing situation,” said Ian Carrotte of ICSM Credit, “and when the furlough scheme ends more companies will go bust. Suppliers must keep up the pressure to get paid now and not allow clients to delay payment using the Covid-19 crisis as an excuse.”
Chris Tindall in Motor Transport has reported that Manchester construction bulk haulage firm Digway has entered administration after 50 years in business. They had 15 HGVs and obviously a workforce to go with them and on a social history note Digway was the first haulage company to be run in the country by a Sikh family. He also reported on the logistics company Cardiff Container Link who have also entered administration. At the other end of the spectrum of company sizes and reach the car rental company Hertz have also entered administration.
“We are offering temporary free membership and free legal letters during the crisis,” said Ian Carrotte, “because so many companies and sole traders are affected. Most people will pay up overdue invoices if pressure is applied – and the court system is open and functioning.”
There’s more news of potential future problems due to debt. One such culprit is the Edinburgh Woollen Mill who have been reported in the national press as owing £27m in unpaid invoices to suppliers. Asda are also in the frame for not paying suppliers for their clothing department as well as Wetherspoons who openly stated they would withhold payment until their pubs reopened. And still in Motor Transport – the trade magazine for logistics – DHL Supply Chain is facing widespread industrial action following its decision to close its Sheffield and Ebbw Vale Tradeteam depots and cut hundreds of logistics jobs. Union Unite said the decision to close the depot at Sheffield is “about as brutal as it gets” and will ballot for industrial action at Tradeteam depots across the country, if talks later this week do not reach a resolution.
About 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