By Harry Mottram: The dark side of Christmas and New Year is that a lot of people are quietly made redundant by unscrupulous company owners who hope the firm’s insolvency is not noticed by the media. For the workers it’s the worst time to be canned as not only do they enter the festive period with no job and no chance of looking for one until January, but they may will have not been paid.
As January 2005 unfolds a number of firms appear to have chosen the period often called ‘Twixmas’ – the time between New Year’s and the week before Christmas to shut up shop for good sending out redundancy notices by email – or simply making a statement online.
The Insolvency Insider website has charted several companies who called it a day during the festive period including Dancing Leopard Clothing, (pictured) a Walsall-based online fashion brand, which collapsed into administration a week before Christmas Day. Andrew Fender and Sandra Fender of Sanderlings are reported to have been appointed as joint administrators.
At the same time MySpa (UK), of Chaddesden, in Derby cease trading and was liquidated on December 19, sacking the workforce blaming poor trading conditions in the hot tub market. Another firm to use Twixmas as a chance to cut their losses were The Customade Group of companies, shedding 100 jobs at their Gateshead firm Virtuoso Doors.
Moving to Grimsby Arctic Fish Products entered administration in December blaming ‘cash flow difficulties’ leaving not just the staff in limbo but also the creditors wondering if they’ll ever see any cash. In Wales the former Hilton Garden Hotel at Dolgarrog have been has been bought out of administration by the Interesting Hotels Group and renamed as IXORA Hotel & Spa. The hotel opened in 2021 was owned by the Ainscough family who benefitted from millions of pounds of tax payers money in updating it.
Medical based firm In Practice Systems who provide software general practitioners in Scotland, entered administration in December due to financial difficulties. These are just the tip of the iceberg as many firms also operate ghost insolvencies where they tell suppliers and workers they are to be liquidated while quietly changing the name of the company and continuing to trade in the New Year. As they say in Government circles – bury bad news when something big is happening so no one will notice – like Christmas.
Editor’s note: in my previous career to journalism in the graphic design industry I suffered the fate on many workers – that of being made redundant just before Christmas. It happened three times – once immediately after the Christmas party on December 23rd. Not the best way to spend the festive period.
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