More good news from a resurgent UK motor manufacturing sector. More than 3,700 jobs will be created by GM and its suppliers as Ellesmere Port lands the deal to build the new Opel/ Vauxhall Astra.
The UK now exports more cars than it imports, for the first time since the early 1970's.
Thursday, 17 May 2012
What happens when a business is sold out of administration?
When a business goes into administration one of the options looked as is to try and sell the business as quickly as possible to ensure an immediate recovery of monies for creditors.
See our new page on what happens in an administration sale
See our new page on what happens in an administration sale
Spaniards Withdraw a Billion Euros out of Bankia
The bank that was part nationalised last week by the Spanish government has seen the general public pull a billion Euros out in a week.
On our theme of banks facing huge withdrawals in Greece see http://companyrescue.blogspot.co.uk/2012/05/cash-withdrawn-by-greeks-in-advance-of.html the pain has moved to Spain.
Do the Spanish people sense a crisis brewing in their banking system and or the return to the Peseta?
There is clearly a bumpy road ahead, we in the UK are not directly affected, but nor are we immune. Time to fasten our seat belts methinks.
On our theme of banks facing huge withdrawals in Greece see http://companyrescue.blogspot.co.uk/2012/05/cash-withdrawn-by-greeks-in-advance-of.html the pain has moved to Spain.
Do the Spanish people sense a crisis brewing in their banking system and or the return to the Peseta?
There is clearly a bumpy road ahead, we in the UK are not directly affected, but nor are we immune. Time to fasten our seat belts methinks.
Clinton Cards close 350 Stores
The administrators, Zolfo Cooper, have decided to shut 350 of the 784 Clinton Cards stores as it seeks to try and rescue the business. All of the Birthdays branded stores will be closed. The company had tried to sell the Birthdays stores previously but it looks like there was absolutely no value in those stores. The administrators had said that the portfolio of real estate was simply untenable. One has to presume that the landlords were not prepared to offer any concessions on the rental terms.
The move will see 2,800 full and part-time staff lose their jobs in a wave of closures starting next week and continuing into June. The estate will slimmed down so that the company is more attractive to potential purchasers. So far most interest has centred around the possible purchase by WH Smith, although there are likely to be other bidders. Administration followed by a sale is often the best way to return money to creditors, keep the profitable part of the business going and preserve jobs.
If you are an employee of the business please refer to our help for employee pages where we give details of your rights and what compensation might be available.
The move will see 2,800 full and part-time staff lose their jobs in a wave of closures starting next week and continuing into June. The estate will slimmed down so that the company is more attractive to potential purchasers. So far most interest has centred around the possible purchase by WH Smith, although there are likely to be other bidders. Administration followed by a sale is often the best way to return money to creditors, keep the profitable part of the business going and preserve jobs.
If you are an employee of the business please refer to our help for employee pages where we give details of your rights and what compensation might be available.
Wednesday, 16 May 2012
Lola Cars may go into administration
Lola Cars International, the racing car group, which started in 1958 has filed an intention to appoint administrators citing severe cashflow problems following HMRC decision not to pay R&D tax credits. The firm employs 172 people in Cambridgeshire and builds cars for the Le Mans race. In a statement the firm said.
It is with enormous regret that a decision has been taken to issue Notices of intention to appoint an Administrator to Lola Cars International Limited and Lola Composites Limited. This step allows the board to continue its discussions with possible investors and prospective purchasers with a view to securing the best outcome for the staff, creditors and customers of both businesses."
The filing of a notice of intention puts a ring fence around the debts of the company for 10 days and stops creditors attacking the company. It is summed up by their statement as it gives them a breathing space. It is possible that a creditor has issued a winding up petition but it has not been advertised yet
The last filed accounts in 2011 show the firm made a profit of £159k on a turnover of £6m. The firm said it will make a further announcement on the 21st May 2012.
It is with enormous regret that a decision has been taken to issue Notices of intention to appoint an Administrator to Lola Cars International Limited and Lola Composites Limited. This step allows the board to continue its discussions with possible investors and prospective purchasers with a view to securing the best outcome for the staff, creditors and customers of both businesses."
The filing of a notice of intention puts a ring fence around the debts of the company for 10 days and stops creditors attacking the company. It is summed up by their statement as it gives them a breathing space. It is possible that a creditor has issued a winding up petition but it has not been advertised yet
The last filed accounts in 2011 show the firm made a profit of £159k on a turnover of £6m. The firm said it will make a further announcement on the 21st May 2012.
Meanwhile in UK unemployment falls...
The latest figures on the numbers claiming unemployment benefit showed a surprise drop of 13,700. This is saving approximately £60m in benefits per annum and assuming they are earning there will be the tax take on top. This yet again shows that it is unlikely that the country entered recession in the first 3 months of this year. We await the revised figure. Are we know moving in the right direction?
However, many of these jobs are part-time, 8 million now, and demand is still weak so the report card is "could do better". Self-employment has also reached a record figure of 4.1 million, up by 89,000 since the previous quarter. Self employment is a good thing and the small businesses will help us get out of this "recession".
Certain industry sectors are still being hit hard, such as retail, and there will be some impact from the recent administrations in this sector such as Game and Clinton Cards. Meanwhile the car industry is going from strength to strength!
However, many of these jobs are part-time, 8 million now, and demand is still weak so the report card is "could do better". Self-employment has also reached a record figure of 4.1 million, up by 89,000 since the previous quarter. Self employment is a good thing and the small businesses will help us get out of this "recession".
Certain industry sectors are still being hit hard, such as retail, and there will be some impact from the recent administrations in this sector such as Game and Clinton Cards. Meanwhile the car industry is going from strength to strength!
Cash withdrawn by Greeks in advance of collapse
Greek people now getting that collapse is imminent?
Over E800 was withdrawn by savers from Greek banks on Wednesday. There was no panic said a central bank spokesman.
Rather like Northern Rock, the queues are going to be longer and longer until the banks collapse or the "Government" steps in and agrees to exit the Euro and reintroduce the Drachma.
Expect a 50% valuation to follow.
These look like the final days leading to a disorderly break up of the Euro. Will Spain stand by and watch its unemployment grow towards 30-40% as in Greece? Or will it, too, exit stage left? What price Italy next?
Interesting days lie ahead for banks, bond holders and governments clinging on to a failed monetary experiment. But the real worry for me is what will the populations of countries, facing economic collapse, non payment of salaries and pensions do?
Over E800 was withdrawn by savers from Greek banks on Wednesday. There was no panic said a central bank spokesman.
Rather like Northern Rock, the queues are going to be longer and longer until the banks collapse or the "Government" steps in and agrees to exit the Euro and reintroduce the Drachma.
Expect a 50% valuation to follow.
These look like the final days leading to a disorderly break up of the Euro. Will Spain stand by and watch its unemployment grow towards 30-40% as in Greece? Or will it, too, exit stage left? What price Italy next?
Interesting days lie ahead for banks, bond holders and governments clinging on to a failed monetary experiment. But the real worry for me is what will the populations of countries, facing economic collapse, non payment of salaries and pensions do?
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