Latest ICSM Credit News: weight of debts brings Tribal Clash to the brink; Casual Dining Group goes into administration, and more problems for haulage industry as firms collapse

Outdoor concerts, trade fairs and the events industry has been devastated by the economic shut down caused by the Covid-19 Crisis with The Print Show and Fespa both moved to 2021.

Customers won’t be refunded

Events management outfit Tribal Clash has announced it is facing liquidation after its competitions around the world have been cancelled leaving it with no cash flow and a mountain of debt. Based in Devon the company has announced it cannot refund money to 450 customers who have paid £270,000 in advance for planned events in the UK, USA and Portugal.

Teams of six enter the beach based competitions of strength and teamwork while spectators buy tickets to watch the fitness fanatics battle it out with tests of endurance. The firm said 100 teams had received refunds but things look bleak for everyone else including suppliers. Tribal Clash said there was "no cash" left from the ticket sales and "we simply don't have and never have carried enough cash reserves to refund 100% of our customers.”

Andrew Barker of the firm said some of the ticket money had been spent on subsidising previous events and investment in future events, while the rest had gone on overheads, paying hire companies, landowners and transport.

91 restaurants to close

The Casual Dining Group has gone into administration meaning all 91 outlets of the Bella Italia and Café Rouge chains will not reopen leaving thousands out of work and suppliers left high and dry. However rival hospitality firms have indicated interests in acquiring some of remaining 250 restaurants from administrators Alix Partners.

The ‘’extreme operating environment’’ for the casual dining sector, among others, due to coronavirus forcing restaurants to shut since the start of March, is blamed.

ICSM Credit warning over hospitality woes

Ian Carrotte of ICSM Credit has warned suppliers of hotels, pubs, restaurants and cafes to ensure they are guaranteed payment as so many are in trouble and falling into administration or simply not paying any invoices. Weatherspoons notoriously announce they would not pay suppliers until they could reopen, while this week James McAllister in the Mail Online reported on Pret A Manger announcing as many as 45 closures to the sandwich chain meaning one in ten of their outlets would go along with 800 jobs. The Mail’s journalist said: “Last week it was reported that Christou had told Pret's 8,000 UK staff that weekly takings had fallen to £3m, just 15% of normal levels, and that an announcement about the “job situation” would be made on 8 July.”

Ian Carrotte said: “Beware of a new customer putting in a large order out of the blue as it is possible their existing supplier has put them on stop. If they are vague about your payment terms then turn away the order.”

Creditors to will get something

Chris Tindall in Motor Transport News reported on the collapse of Norfolk waste and tankering business Harveyson Haulage. Creditors he notes are now expected to receive a dividend.

He said: “The company entered administration in July 2018 and after a period of trading through its administration in order to preserve its goodwill, the haulier’s business and assets were sold to HH Tankering Services – which shares two of the same directors - for £52,000. In a report to creditors, administrator Quantuma said payment had been received in full from the purchaser and its secured creditor Bibby had been repaid £336,648 from book debt collections. Previously, Quantuma had warned that firms that provided services to the company were not anticipated to be repaid.”

Haulier’s reputation lost as firm is liquidated

Motor Transport’s Chris Tindall has highlighted an unfortunate story of a company’s demise due to a lack of judgement by its boss. He reported: “A Telford-based haulage firm has entered liquidation three months after it had its operator licence revoked at a public inquiry. THR Parcels & Pallets entered liquidation on 24 June and insolvency practitioners from Birmingham-based Butcher Woods are now handling its affairs.

He explained that the licence holder appeared before traffic commissioner Nick Denton in January and according to the Office of the TC (OTC), it was revoked: “The licence holder, David Vowles, was also the transport manager,” said an OTC spokesman. “He was found to have been loaning his licence disc for £120 per month to another company that did not have a licence to operate. This is illegal and undermines the whole operator licensing regime.”

The firm were based in Telford.

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