ICSM Business News: warnings by ICSM that retailer Joules was in trouble come to pass as the firm faces administration
By Harry Mottram: ICSM warned four weeks ago that the retailing giant Joules was on the brink of collapse after failing to finance £20 million pounds of debt. Now the company’s planned rescue bid has collapsed leaving the main alternative to call in administrators to wind up the business or sell off parts to it to competitors.
At stake are 132 stores with 1,600 workers looking at redundancy and a long list of suppliers left high and dry. Ian Carrotte of ICSM said there were concerns the collapse of the retailer could be the start of a new wave of insolvencies ahead of the Chancellor’s budget. On Thursday Jeremy Hunt MP is expected to announce more tax rises and cuts to Government spending while at the same time businesses are facing increasing inflation, interest rates and energy bills.
“Debt is the killer blow for many struggling companies,” said the ICSM CEO, “as servicing loans has become more expensive as interest rates increase along with the fall of the pound against the dollar. Add to that all the other ills being foisted on firms and you have all the makings of a recession. My advice to all businesses is to be wary of new and large orders from big name firms – they make well have shopped around seeking a new supplier who hasn’t got wise the fact they are in trouble.”
Already insolvencies in England and Wales hit highest level in April-June period in nearly 13 years suggesting there is more to come as since then the economy has taken a dive. Rory Tingle of The Mail has reported on troubled retailer Marks & Spencer who face a £100million bill energy next year while business rates remain unreformed and are expected to be increased by 10% next year.
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com
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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