Yet another business went into administration last week despite turning over $14 million. Hallam Manufacturing is just the most recent in a long line of manufacturing businesses to collapse and even a successful trading history of 41 years wasn’t able to help it.
This will no doubt be a horrible time for Hallam Manufacturing, their staff and families. But what about the flow on effect that this will have on the businesses who are unsecured creditors who will miss out on a collective $1.9 million due to these events? It’s likely that this could have crippling effect on
I was talking to a friend the other night who mentioned that his previous boss, a residential builder, had stopped a job because he hadn’t been paid a few of his last invoices on one job. He still managed to pay out his subbies and employees but had to write off close to $350,000 out of his own back pocket because of a client who asked for work to be done, agreed for the work to be done, had a contract for the work to be done, had the work done, then ……. couldn’t pay.