Carpet Shops have rugs pulled from under their feet by insolvency
One of those trades are the carpet suppliers and fitters. Just this week the UK's second largest carpet supplier went into Administration. I suspect that up and down the country smaller firms are also going to the wall. If houses are not being built then millions of square metres of carpet are not being bought or laid. This puts sellers of carpets, the fitters and the carpet manufacturers all in peril. The matter gets worse however as the credit crunch has generally lead to a contraction ion credit. That is not so bad as many carpets are bought for cash or on credit card, but where household budgets are coming under strain, then many people will take stock before making what is a discretionary purchase. If it is not absolutely essential to make a purchase, these types of purchases are being placed on hold. After all it is better for a family to be able to pay the heating and lighting and food on the table than a new floor covering in a bedroom. As a result sales are heavily advertised, with remarkably cheap prices being quoted to carpet a room. That may lead to some sales, but unless there are a lot of these, the turnover experienced by a company will often not be enough to provide enough profit to see the company through the short term. If a company has a lot of stock which it has not paid for and maybe an outstanding rent demand, but does have a reasonable flow of orders, it may be possible for it to propose a Company Voluntary Arrangement to its creditors whereby it agrees to pay them back a proportion of the debt over a period of time, whilst trading through its difficulties. Many creditors will accept this a better solution than getting nothing in the event of a liquidation. The key to any insolvent situation is to take effective advice very early. Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company. For all further reading see http://www.helpwithdebtuk.com for personal contact email sthatcher@helpwithdebtuk.com and see if he can help you with your debt problem. For Steve's thoughts see http://steves-debt.blogspot.com Finally if in the UK and you need a friend to speak to call 01162171406 About Author Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to. Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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