Re: Spud u like closing outlets?
Originally Posted by
Baz46
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People cannot live on charity and pay their bills that way either, money is something that is worked for so salaries should be protected. It's been worse in this way since weekly pay was mostly replaced by a monthly payment. What happens when a company goes bankrupt is basically theft!
Often if not always they do see it coming. It is kept quiet as suppliers owed money would instantly want outstanding invoices paid and would also refuse to supply anything further by way of goods on credit.
Most people who have lost money as a result of companies closing down overnight are well aware there is no sentiment in business. It is well past time the way it is possible for owners of companies that close, only to start up again the next day, often with just a change of name but all debts wiped out, was stopped. These same people also ensure their personal assets are secured beforehand, often by putting them in their wife's name. That is legalised theft by any other name I reckon. Personally I am still owed around £3,000 following businesses having closed overnight without notice. Fortunately I usually managed to find other work quickly. One time, the very next day, only to find I was doing work for the defunct business – the bosses knew each other so 'helped out' by doing his friend's work for existing clients after his business had closed down!
The laws where limited liability companies are concerned are very well defined, very strict, and we'll enforced.
Extending credit to a limited liability company in the form of goods or services includes a risk but the advantage is that typically you have other guys acting as an extension to your own sales and marketing team.
Sometimes you are a dog, sometimes you are a lamp post.
It's all about risk and managing the risk.
As for employees, if an employer goes to the wall the employee is protected by the law concerning redundancy.
If a limited liability company fails it doesn't just happen. The bankruptcy hearing investigates and the liquidator deals with debt and any goods etc. that the failed company has and repays debtors by liquidating assets. Meantime shareholders lose all investments they have in the failed company.
Providing certain laws regarding the duties and responsibilities of directors of the failed company have not been broken it is absolutely correct that a new company can be set up by those same people and start trading or even have started trading in parallel with the failed company before it actually went into liquidation - but that can be a bit uncomfortable to explain during the bankruptcy hearing.
People should NEVER forget that an employee, every employee, is just a resource.