Pic: Fashion Network
The UK’s economic situation is rapidly deteriating said Ian Carrotte of ICSM Credit as famous names along with hundreds of small firms go bust in the aftermath of the Covid-19 crisis. The latest to go are Brooks Brothers who have clothing stores in the UK and Ireland while Boots and John Lewis have shed more than 5,000 jobs in one day.
“Despite the Chancellor’s heroics at stemming the collapse,” he said, “the reality is Covid-19 and the global shutdown of economies has destroyed many a good business. Whether it is cash flow, banks calling in loans or a switch to online shopping the result is a disaster for the British economy. Eat out vouchers are fine along with helping for young people to get jobs – and I applaud that – but a universal cut in VAT, slashing business rates, rent holidays for the high street retailers, infrastructure investment and recruiting care workers, NHS staff, police and teachers cut during austerity is what is needed.”
The BBC reported that Brooks Brothers, one of America’s oldest clothing brands, has become the latest US retailer to file for bankruptcy protection. They said: “The menswear company, which is more than 200 years old, sought court protection from creditors on Wednesday while it looks for a buyer. It had already shut some stores and prepared to close its US factories. Known for its suits, it joins J Crew, JC Penney and Neiman Marcus as a business casualty of the pandemic. The company dates back to 1818 and its clothes have been worn by dozens of US presidents, including John F Kennedy and Barack Obama. It operates about 500 stores globally, roughly half of which are in the US, and employs more than 4,000 people. Since 2001, it has been owned by Italian businessman Claudio Del Vecchio, whose family founded Luxottica.”
Ian Carrotte said: “Every day more firms go to the wall – I have not seen anything like this in more than 40 years in business. Big names are falling like cards as the economy stalls – my main concern is for the suppliers of firms in crisis as so many will not get paid and could themselves go under. It is a time to batten down the hatches and cut overheads and try to survive the next 12 months. Joining ICSM Credit is one way to protect yourself from bad debts.”
About ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel – while at the moment there’s a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach – ask for details from Paul.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk