Quote - If any forumite gets a set of Statutory Financial Statements from Companies House, and those accounts show a negative balance sheet, then it is not unreasonable that he or she can come on to this forum and say that that company is in financial difficulty.
It is not unreasonable to come to such an informed personal conclusion assuming of course that one is inclined to go to such lengths. But is it truly reasonable to share your conclusions with the wider world, and what purpose does that serve?
Many businesses will trade in and through difficult circumstances during their lifetime and a lot of them will survive and thrive. Putting sensitive information into the public domain only increases the pressure at a difficult time and may in fact thwart a company's ability to plan and execute a successful recovery.
If the motive is to alert potential customers then this only makes matters worse. Does the wider world have a right or indeed a need to know? I believe not. You draw your own conclusions based on personal visits, testimonials etc. It has been stated many times before on this forum that the onus is on the customer to conduct business with any FTO in a manner which reduces their exposure to an accepable level, and which is commensurate with their personal circumstances.
This is taking responsibility for one's own actions and conducting business in a prudent manner.
I also suspect that from a legal perspective the information gained from companies house would be discounted successfully by any lawyer in pursuit of a libel/defamation claim.
In short there is no real measure available to the general public to indicate the ability of an organisation to proceed as a going concern. Using best judgement at all times and staying risk averse is not a bad strategy.