ICSM Business Comment: anger at directors who walk away leaving debts like the Middletons (parents of the Princess of Wales) when Party Pieces went bust

By Harry Mottram: The parents of the Princess of Wales have been rudely reminded by an irate victim of the collapse of their company Pary Pieces (that left massive debts) with posters calling them out in their home village of Bucklebury in Berkshire. The posters aimed at Carole and Michael Middleton are reminders that when a firm goes bust there are victims who feel aggrieved at either losing their job through no fault of their own or suppliers who are thousands of pounds out of pocket.

The company owned by the couple went into administration owing £2.6 million pounds earlier this year including an unpaid tax bill of £176,000. The anonymous person behind the poster campaign that has embarrassed the family clearly is annoyed by the fact that although many have lost out financially due to the demise of Party Pieces, they see the very prosperous couple seemingly untouched by the collapse as they walk away from the limited company. Many will stick up for them saying ‘that’s business’ which is true but too many directors legally absolve themselves of their responsibilities in these situations forgetting that a firm going bust has human consequences.

It is not unknown for creditors of collapsed companies to take the law into their own hands and enter the property of a business that has closed down and seize goods they have delivered but have not been paid for. The fear is their stock will be wrapped into a liquidation sale by the administrators. One can hardly blame them – especially when ‘dodgy’ directors try to set up a phoenix firm – often using assets that don’t belong to them – and when so often administrators declare that unsecured creditors will not receive a penny of what they are owed after a liquidation. Putting up some posters seems pretty tame in that situation.

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