I have been involved in hundreds of insolvency
cases over the course of a career that has spanned
more than 25 years. The apparent causes of the
company’s difficulties could usually be distilled
down to one or more problems drawn from a predictable
list of factors. These included over expansion
(“if we build it, they will come”), high interest
rates, shifts in commodity prices, loss of a major
contract or customer, fraud and others that were
less obvious. More often than not, poor management
accompanied by a lack of accountability was
also a contributing factor.
Reproduced with permission of the publisher from Commercial Insolvency Reporter, Vol. 23, No. 1, October 2010.
Location