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Jonny HarrisonJonny Harrison is sailing to Australia from the UK via the Panama Canal before he starts work in Sydney on a secondment at his firm PricewaterhouseCoopers »
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A corporate flaw

Posted by Andrew Mernin on September 17, 2007 9:09 AM | 

A lot can happen in business in ten minutes. Deals can be struck up, emergency loans can be given or an entire workforce can be laid off. One story I covered recently told how a business was saved from extinction in just ten minutes - no mean feat I'm sure you'll agree.

The North-East firm was rescued from disappearing from the face of the earth by a consortium who placed it into administration for ten minutes as part of a pre-packaged deal.

Within minutes, the firm's debts were cleared and the jobs of its workforce were secured.

But what several readers were keen to remind me was that, while the story was clearly good news for staff and management at the firm, it was indicative of a severe flaw to the British corporate set-up.

Several people contacted me to tell me the fact that contractors or clients can see money they are owed disappear into thin air within minutes is huge problem with the system which needs to be addressed.

So what do you think needs to be done to address this issue and is there enough support available for those businesses which lose out when others are saved?

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