Big News
14 Jan 2014

Small company you’ve never heard of goes bust!

It’s now 2 weeks in to 2014 and we’ve seen a series of companies going bust already this year

  • KMS Components – £45m turnover
  • W R Refrigeration – £45m turnover
  • Cameron Black – £30m turnover                          
  • Mivan Ltd – £61m turnover
  • D C T Civil Engineering – £22m turnover

None of these made much of a splash outside the local media and trade press and for most companies in the UK it would be fair to say “nothing to do with me” and carry on regardless.

The list of companies is not meant to be comprehensive – there are plenty of others that have gone out of business or are experiencing severe financial difficulties – it’s just a quick and easy list of names that I’ve come across in the first 14 days of 2014. Combined turnover of over £203m and probably around £50m of trade creditors who will be paid nothing.
Likely dividend for unsecured creditors
£0.00 in the £1.00

So as the mood in the news is of a return to growth and an upturn in orders, don’t lose sight of the ever present risk of non-payment by your customers. There are hundreds of companies who have lost money to the companies listed above; there may well be some who will now be forced out of business themselves as a result.

And you can’t take out credit insurance AFTER a customer has gone bust!

14th January 2014