Saturday, 20 September 2014

Loans 4U - but nothing for the exchequer and cuts for the workers

It seems that Phones 4U was just the latest in a string of companies in debt up to the hilt which then fold, their directors having drawn princely rewards in the mean time.  Chris Blackhurst's analysis in the Indy today is more generous but surely the private equity company which bought out founder John Caudwell at the top of the market knew what it was doing.

The result is that "workers [...] may have to wait months to receive unpaid salaries despite administrators revealing the collapsed retailer has £110m in the bank" and "staff may not even receive the full amount for the days worked" before the company went into administration. "The company collapsed with debts of £760m [...] around £200m is owed to unsecured creditors who are unlikely to see anything. These include suppliers and the taxman."

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