2020 12 18 Allander Print
As 2020 ends more firms throw in the towel as three companies in three different sectors collapse - and Ian Carrotte of ICSM Credit asks what will be left when people return to work in 2021?
The gullible may think that the extension of the furlough scheme to the end of April is a good thing for the UK economy, but not so says Ian Carrotte of ICSM Credit.
“Like many in business I feel the furlough scheme is delaying the inevitable,” he said, “too many zombie firms are being kept afloat by the system funded by the tax payer while viable firms are unnecessarily suffering due to the lockdowns and Covid 19 restrictions.
“If supermarkets can remain open and Amazon and the likes can trade then so can virtually all businesses with the usual precautions in place.”
He also wondered like many in business why there was a sense of denial in Government over the scale of the economic problems caused by the Covid-19 policies of 2020.
"With so many firms going to the wall or are deemed unviable, who will have a job in 2021?" he said, "maybe three million unemployed by the summer and so many decent firms gone - it is a disaster that politicians don't seem to recognise."
Print firm collapses
The BBC have reported on the major Edinburgh printing company Allander Print collapsing into administration with the loss of 40 jobs.
They reported: “Administrators from FRP Advisory have since sold Allander's assets to another Edinburgh firm, Tempus IME. Tempus provides digital design, print, marketing and communications services to blue-chip businesses.”
In a statement, FRP said: "The administration was caused by unsustainable cash flow problems stemming from the current Covid-19 restrictions. Unfortunately, the administration has resulted in 40 staff being made redundant with immediate effect. Two remaining staff are being retained in the short term to assist with administration and site clearance."
Tempus managing director described Allander Print, which was founded in 1995, as "a highly prestigious brand". He added: "The company has been adversely affected by Covid-19 like numerous companies all over the UK. Tempus, with its unique business model, will be able to support the existing Allander customers and will be introducing new innovations built around excellent customer support."
Ian Carrotte said it looked like a case of the suppliers being left high and dry and appealed to suppliers in the industry to consider granting excess credit to customers known to be struggling.
Construction industry casualty
The Government’s plans to build 300,000 homes a year have been put in doubt following their u-turn of where the properties are to be constructed. Initially rural areas were to find plots for major construction projects but after a backlash from Tory MPs representing countryside constituencies in the south of England the scheme has been adjusted with an emphasis on more homes in cities and the North.
That hasn’t helped the industry which has seen fewer homes being built in recent years and infrastructure projects delayed or deferred. One good piece of news is the supreme court’s decision that the third runway at Heathrow can go ahead although the first planes to land there may be a decade away.
Another construction firm has gone bust this week when the Kent-based contractor Coombs (Canterbury) Limited fell into administration, blaming a poor trading position that was then exacerbated by the COVID-19 pandemic. Thomas D’Arcy and Christopher Latos of White Maund Insolvency Practitioners have been appointed as joint administrators reported Business Sale.
Domino effect
The shoe supplier Lloyd Shoe Company of London has filed for administration with the accepted understanding the firm has been bought down by the demise of Arcadia.
“Expect a domino effect when a big firm fails,” said Ian Carrotte, “as not only related firms affected but suppliers as well. Some suppliers will have been left with thousands in unpaid invoices when a company goes into administration plus they will have stock as well as future projected trade left in a shambles. Whatever you do as a supplier to these big names in trouble is be very careful with granting credit.”
Business sale reported: “Lloyd Shoe was founded in 1986 and employs 243 staff. The company operates over 800 footwear concessions for both men and women in the UK, Ireland, Germany, the USA and the Netherlands. Many of its concessions are in stores belonging to the Arcadia Group.”
In a statement, the company said: "Lloyd Shoe operates footwear concessions for stores within the Arcadia group of brands and the business is working closely with the administrators of Arcadia to support their trading strategy whilst they seek a buyer(s). The business continues to trade as normal.”
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