Originally Posted by
Piltdown Man
When accountants get their snouts in the trough the game is up. I don't think any accounting firm has ever brought any business back from the brink, but Christ have they managed to extract whatever is left in the carcass of any dying business they get their greedy paws on. And they walk away wilh full pockets, they leave nothing for the employees. I reckon if these people are so good, they should only ever work on a payment by results basis. Save the company = you get paid. But no, they are not that good and never have been. But I'm truly sorry for the employees of Monarch. I hope they are able to find worthwhile employment in the very near future.
Ah, the obligatory 'blame the Accountant' post! Jesting aside, I will give you my view. I suspect Monarch's liabilities exceed their assets by a considerable margin and the firm's liquidity (read cashflow), is dying up, so someone, somewhere has decided to pull the plug. The appointed Insolvency Practitioner (yes, usually a qualified Accountant), will make an assessment whether the business can be salvaged or sold on. More often than not, because the debts have mounted up and the assets are mortgaged up to the hilt, there isn't alot to sell on! Alternatively the order-book is poor, so there isn't alot of point in continuing. (However, in this case of Monarch, the slots at Gatwick may be worth a few quid, assuming Monarch have the rights to them.)
As the Accountants (read Insolvency Practitioner), being paid for their services, that's par for the course. Of course, there is a pecking list of creditors and the great British Government in the form of HMRC is at the top of the list, followed by Lenders with secured assets. Failed businesses can be salvaged by the Accountants and one good example is Jessops. Sure, it hasn't survived in its previous shape and form but it is still going.
Don't get me wrong, the failure of Monarch is not good. From a personal perspective, I've experienced unemployment as it isn't particularly pleasant. If one has onerous financial and family commitments, it can be disconcerting. Fingers crossed, Monarch survives.