ICSM Credit News: Covid 19 brings disaster in the high street as office workers fail to return, a coffee firm collapses and a famous shirt brand could disappear
Famous names in trouble
Some or the most famous names in menswear are facing extinction if their parent company The Baird Group cannot have a CVA approved. The FT report the firm that owns Ben Sherman, Jeff Banks and Suit Direct are in negotiations with creditors for a deal to axe 18 stores and 262 jobs along with a cut in rents. The CVA has to be approved by 75% of creditors by August 10 otherwise it could collapse completely.
Video appeal
The BBC have run a heart-felt plea from small trader Rumit Shah who is one of thousands of shop owners who have seen a collapse in business due to Covid-19. Office workers who make up the majority of his trade at Card Galore are largely staying at home causing footfall in sandwich shops, take-aways, news agents and various stores that populate city and town centres to disappear.
In the video available on i-player Rumit Shah said: “City retailers, restaurants, coffee shops and sandwich shops all face complete ruin. Businesses will fail without any fault of their own. Please help.”
Ian Carrotte of ICSM Credit said without these small businesses the economy would suffer. “Small businesses from an instant print shop to a chippy are the backbone of this country. Millions of people are employed in them and many of these firms become the big businesses of the future. Help needs to come in a return to work in offices where it is safe to do so and for Rishi Sunak to signal to councils to cut or suspend the unfairness of business rates. I’d also like to see grants available for more small shops and businesses in city and town centres.”
Coffee liquidised as hospitality industry suffers
Big Hospitality’s Finn Scott-Delaney has reported on the liquidation of the coffee shop brand Department of Coffee and Social Affairs. Quantuma have been appointed as liquidators for the company previously known at Coffeesmiths which also includes Filmore & Union in the north east of England. The company had acquired a number of cafes in recent years and had grown to 20 outlets.
Burrito chain Chilango is set to go into administration in the hope of finding a buyer through a pre-pack sending alarm bells ringing amongst its suppliers.
Ian Carrotte of ICSM Credit said: “As soon as a firm announces its attention to call in the administrators it can mean bad news for creditors. My advice is not to grant any new supplies without cash up front as suppliers are often the last concern for administrators.”
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