P LETTER OF THE WEEK
Page 20
If you've noticed an error in this article please click here to report it so we can fix it.
Phoenix firms: 'Where do we get our protection from?'
JUST READ YOUR recent article on how the transport industry allows pre-pack administrations to continue (CM 7 October), but the reality is that both the government and VOSA should be in a position to first stop this from happening, and if it does, they should have some retrospective action to stop the phoenix company trading.
Having been in business for more than 30 years, we have suffered in excess of Elm of had debt, through no fault of our own, and most has been from this kind of trading. It's ridiculous!
This month we received a letter from a friendly administrator, and are suffering the same kind of situation again. One client went into liquidation on the 19 October 2010, but the directors had already set up another company earlier in the year.
The administrator adds a note at the bottom of the confirmation letter, stressing that the new company has nothing to do with the old company.
It's now getting to the point that the government must step in and establish some ground rules where this cannot continue.
Where do we get our protection from? Credit checking is only history, not what is happening currently.
Brian Goodall Pegasus Express