Wholesalers across the UK have been feeling the huge knock on effects of major retail and restaurant closures, as more and more businesses fall into insolvency. A litany of high profile failures have added to a “domino effect”, which has seen the impact of one insolvency rapidly affecting other firms.
The collapse of Carillion alone left a reported 30,000 small firms with unpaid invoices, and the concussive blast was further compounded by the high street’s seemingly inescapable slump. Suppliers and service providers have been left in grave financial difficulty as a result of these closures, with wholesalers particularly affected.
The wholesale sector generally operates with low-margins, and is more exposed to the ups and downs of the retail sector in particular. Many firms have an over-reliance on a single supplier or customer, which can have a disproportionate effect once any difficulties arise.
Clarke Bell have extensive experience dealing with those who have suffered as a consequence of companies going into liquidation.