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British Steel Collapses Into Insolvency


It was announced yesterday that yet another substantial, seemingly unshakeable company has collapsed into liquidation. The compulsory liquidation puts 5,000 jobs at risk, as well as endangering 20,000 more in the supply chain, according to the BBC. The Independent adds that insolvency experts are labelling British Steel’s demise as the “first heavyweight casualty of Brexit”, and the current economic climate gives good reason to expect other high profile insolvencies to follow in the near future.

Umberto Oliva, ICB’s Director of Credit Division, comments on the announcement:


‘We all appreciate failures occur daily cross-sector, but it’s when the household names that go bust like Carillion, Maplins, Toys R Us, House of Fraser and British Steel that people really stand up and take note. In tough economic times such as these - with companies being affected by Brexit uncertainty, weaker consumer spending and increasing operating costs, among other factors - it is wise to be protected from bad debt.


Having a Credit insurance policy in place offers an array of benefits, however, fundamentally it safeguards a business from potentially crippling losses, because even the largest companies are no longer “immortal” as demonstrated in recent times.


Considering cover in these very uncertain times could well be the key to success and to avoiding unwanted losses which can cause serious business interruptions, or in severe instances – failure.'


If you want to ensure your business is well protected, please contact the ICB Credit team to conduct a free exposure review. For more information, please contact Umberto on his details below.


Umberto Oliva

Director Credit Division


D: +44 (0) 208 282 8590 

E: Umberto.Oliva@icbgroupuk.com
W: www.icbgroupuk.com/sectors-services/credit-insurance



Sources:
https://www.bbc.co.uk/news/business-48365241
https://www.independent.co.uk/news/business/news/british-steel-collapse-insolvency-administration-job-losses-scunthorpe-a8924821.html


Authorised and regulated by the Financial Conduct Authority. Picture credit: © Oleg Yermolov