550 jobs are at risk following another high-profile company being taken into administration. Multiyork, the furniture retailer, will trade until Christmas while administrators Duff & Phelps seek a buyer. Although Multiyork will honour orders made up to 22nd November, it is not looking good for the business that has already been saved once before from receivership back in 1995.
That bugbear of a word, uncertainty, raises its ugly head once again. Difficult trading conditions caused by the fall in sterling have increased the cost of importing raw materials and products. The increased business rates have also been blamed for Multiyork’s struggles.
What could’ve been done?
Multiyork may or may not find a buyer but those suppliers who had invested in credit insurance could rest assured. We tell our clients that they cannot control certain aspects of business but they would be wise to control or protect what they can. Perhaps Multiyork’s collapse was out of their hands during these uncertain times but suppliers to even the largest businesses can protect their business with credit insurance.
It’s not just Multiyork’s suppliers that will suffer but also the string of suppliers lining up behind them. You do not want to be caught up in the domino effect! Credit insurance will leave you standing tall as a claim will be paid against clients who have defaulted on their payments.
For information regarding trade credit insurance or for a no-obligation discussion, please get in touch with our credit insurance experts. Should you require a quote, then please do not hesitate to complete our quick quote form.