Pic: Daily Mirror
Ian Carrotte fires off warning to SMEs over 'out of the blue' orders from ailing airline and travel firms
The latest casualty in the global collapse of the airline industry is Latam, the largest carrier in Latin America. Latam has filed for Chapter 11 Bankruptcy Protection in order to attempt to survive although with close to £1bn in debts its seems unlikely to emerge in its current form.
Ian Carrotte of ICSM Credit fired a new warning to SMEs who are tempted to supply airlines and associated industries without securing favourable payment terms.
“Easy Jet and British Airways are both shedding thousands of jobs,” he said, “as their industry contracts. We have already seen Australia Virgin and Avianco go bust so if an SME is approached with a big 'out of the blue' order for print, food and beverages or whatever: be on your guard. Join us for free at ICSM Credit and find out their credit situation and get inside information from our members.”
British Airways are a firm slashing costs at the moment. Pic: Wikipedia
ICSM Credit reported this week that Adelie, the supplier of sandwiches to supermarkets is being offered up for sale by Deloitte. Considering the Covid-19 crisis cannot last too long it would seem likely a buyer can be found or a pre-pack deal put in place. Supermarkets in general and smaller grocers in particular have seen a hike in sales during the crisis.
News from the haulage industry: Gregory Distribution cutting 100 jobs due to a drop in contracts due to Covid-19 which doesn’t bode well for suppliers.
There is an investigation by the UK’s accounting watchdog into the auditing of Eddie Stobart Logistics. Carol Millett in Motor Transport reports: “The Financial Reporting Council (FRC) is investigating KPMG’s audit of ESL’s accounts for the year ended 30 November 2017 and an audit carried out by PWC for the year to 30 November 2018. The investigations will be conducted by the FRC’s enforcement division under the audit enforcement procedure.”
Ian Carrotte says SMEs must be careful about accepting big orders from ailing firms
Travel Weekly reports on the collapse another travel and holiday firm. They report: “Luxury tour operator Jacada Travel has entered administration. The London-based firm was formed in 2007, employed 52 staff, and specialised in responsible luxury holidays to worldwide destinations. It had a predominantly US customer base. KPMG was appointed administrator on Wednesday, May 27, 2020, and has already sold some assets of the company to luxury safari tour operator Wilderness Safars, which will look after the 570 existing bookings and contact affected customers. All 52 members of staff have been made redundant.”
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