Phil MeekinView Profile
Unless you’ve been living under a rock, it’s been impossible to miss the news about Carillion. The giant of the construction industry recently collapsed into liquidation. Thousands of jobs have been lost, and multiple construction projects have been thrown into the unknown.
A trail of debt
Nobody starts a business with the intention of going bust and leaving a trail of debt behind them.
If you run your own business, you may have spent years building it up, growing its reputation and brand. The thought of your business not being able to pay suppliers, staff wages – even your own mortgage – can be the cause of many a sleepless night.
An unforeseen event, such as a sudden fall in demand for the service or goods you offer, disruption in trading caused perhaps by industrial action, a fire, or a sizeable bad debt are only some of the events which could threaten the very existence of your business.
If you run one of the numerous companies which worked for Carillion and are owed money by them, then the news that PWC had been appointed as Special Managers to oversee the compulsory liquidation of the company, must be the fulfilment of your worst nightmares.
When a large enterprise like Carillion fails, it leaves behind a trail of destruction. The domino effect on the infrastructure of companies which supplied Carillion, means they themselves become financial casualties. It’s highly likely that any money which is owed to your company will not be paid, leaving you with an immediate cash flow problem.
Some companies may be able to weather the storm by raising finance, but often that is not feasible. It also may not be the right decision. Is the business still viable without the Carillion work? If not, borrowing money is not the answer, but there are alternative ways of salvaging your business.
Lots of companies have been affected by the fallout following the collapse of Carillion.
If you are wondering where to start, the best way forward is to take advice without delay. We can outline what options are available to your business and help you formulate a survival strategy. All initial advice is free and impartial, with no obligation.