When a big business goes down, media focuses on shop closures, job losses and customer vouchers.
But the hidden losers are a lot of smaller businesses that supply goods and services to larger corporates.
When it comes to payouts from receiverships, IRD and big Creditors take their cuts first – and Receivers always earn their fees.
That can leave Small Creditors looking at a recovery of a few Cents in the Dollar, after a protracted period.
Trade Credit Insurance can change that. Creditor collapses, Bad Debts, both here and abroad, non payment on invoice terms – all these can be covered.
Trade Credit Insurance also gives lenders more confidence in your business, making them more willing to lend, or impose less rigorous conditions and security requirements on the loan terms.
To see how Trade Credit insurance can free your business, give you the confidence to expand into new markets and protect your balance sheet, contact us here – we will send an expert to talk to you.
The Herald reports:
The receivers for struggling children’s clothing chain Pumpkin Patch are continuing to look for a buyer for the business after announcing a bunch of store shutdowns and job cuts last week.
The New Zealand-headquartered children’s clothing specialist was placed into voluntary administration on October 26, with major creditor ANZ appointing KordaMentha as receivers.
Last week, the receivers announced that 27 of the retailer’s Australian stores will be closed, laying off up to 145 staff.
They had earlier announced seven store closures in New Zealand, which would also result in job losses there.
The group is believed to owe between $45-50 million to ANZ alone, with total creditors owed about $80 million.
The company posted an 11 per cent decline in FY16 sales at $212.4 million, with after-tax loss of $9.1 million.
On Monday, the administrators told the creditors’ meeting in Sydney the company’s directors were yet to submit a statement of affairs outlining the current financial situation of the business.
A second creditors’ meeting will be held after November 16, depending on the progress made in the sale process, Mr Hayes said.
The full story is here