5,000 companies go to the wall in just three months
28-04-2006
Normally there is order confirmation from designers around End September and the larger retailers confirm before Christmas beginning January however the order confirmation process this season has virtually grown to a halt.
Julia Anna Designs is currently experiencing a slow down in orders.
Ibraham Boutneska commented: “I just don’t understand it. We have every machine available to produce denim ware and quality soft separates but orders just seem to have dried up. Last year we had the best year yet with companies such as Jigsaw, Whistles and Burberrys but this season it’s very slow”.
Other retailers have also contacted us proclaiming the same problem. Today it’s been announced that British businesses are going under at a faster rate than at any other time since the end of 1999. Almost 5,000 firms went into receivership in the first three months of this year as cash flow tightened and the level of debt was just too high to continue.
In the first quarter of 2006 4818 stopped trading which was almost 15.5% higher than the same time last year and it’s not just small businesses. High street chain Sock Shop went into receivership last year.This compares starkly to 2004 when Britain had the lowest recorded number of corporate failures for over 6 years.
Remember the old adages; cash flow is King; turnover is vanity and profits are sanity.
Jennifer Holloway
