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Thread: Company in trouble? Administrators coming in? Comet show you how to make things a little bit worse.

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    Politics.ie Member Sync's Avatar
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    Default Company in trouble? Administrators coming in? Comet show you how to make things a little bit worse.

    When you call administrators in, one of the first things they do is put a pause on payments to creditors so that a thorough check on where the money's going can take place and first preference creditors can be identified. Now when you have a voucher or gift card or credit note to that company, you are in fact a creditor, and a creditor on a very low rung of the ladder. So it means that you can't use these vouchers in the initial stage of administration, and possibly never in the event of liquidation.

    It's something that happens everyone, it hit Game recently enough as well. People will complain, but ultimately if it's just faceless spods, no one really cares. Unless you get a photogenic child with disabilities who's education is being impacted by the move. Like if that happens it'll cause significant negative publicity. But that won't happen right. Right?

    Oops.



    A mother whose son has cerebral palsy has spoken of her anger after struggling electrical retailer Comet refused to accept a £500 gift card.

    Maria Horton was given the card by the charity Family Fund to buy an iPad to help her son Sam, four, with his school work.

    But when she visited a Comet story in Plymouth, staff refused to accept it.

    Administrators for the retail store say the use of gift cards and vouchers has been temporarily suspended.

    "I spoke to the manager and he said the same thing, that I would have to go away without the goods.
    Now this KILLS Comet. Not just in terms of good will, but it's the sort of story that makes people realise "Hm. If I buy something from these guys tomorrow and it goes wrong, it's pretty likely I'm stuffed." So people won't shop there. At all.

    It's something Administrators need to stop doing. If you move into a business that has a chance of recovery, the most important thing is to provide BAU to the public. The second the façade slips, the mask crashes to the floor and cracks into pieces.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    Quote Originally Posted by Sync View Post
    When you call administrators in, one of the first things they do is put a pause on payments to creditors so that a thorough check on where the money's going can take place and first preference creditors can be identified. Now when you have a voucher or gift card or credit note to that company, you are in fact a creditor, and a creditor on a very low rung of the ladder. So it means that you can't use these vouchers in the initial stage of administration, and possibly never in the event of liquidation.

    It's something that happens everyone, it hit Game recently enough as well. People will complain, but ultimately if it's just faceless spods, no one really cares. Unless you get a photogenic child with disabilities who's education is being impacted by the move. Like if that happens it'll cause significant negative publicity. But that won't happen right. Right?

    Oops.





    Now this KILLS Comet. Not just in terms of good will, but it's the sort of story that makes people realise "Hm. If I buy something from these guys tomorrow and it goes wrong, it's pretty likely I'm stuffed." So people won't shop there. At all.

    It's something Administrators need to stop doing. If you move into a business that has a chance of recovery, the most important thing is to provide BAU to the public. The second the façade slips, the mask crashes to the floor and cracks into pieces.
    Not much they can do though. It's not like one could expect the staff/managers to club together to buy the kid his iPad what with them facing possible unemployment and Christmas on the way.
    Happiness is a dry martini and a good woman … or a bad woman.
    –George Burns

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    Politics.ie Member Sync's Avatar
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    What you need is for the Administrators to realise what a negative effect not paying out on these leads to for the business you're meant to be trying to save and just pay out on vouchers/cards etc etc. They shouldn't need to be told this but evidently they do.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    Quote Originally Posted by Sync View Post
    The second the façade slips, the mask crashes to the floor and cracks into pieces.
    I love how capitalism does this: mere changes of opinion transform things from valuable to worthless in an instant. See Google shares and Greek bonds and any currency. I hope we start work on evolving past this stage soon
    When you see the words "Mises" or "Hayek" in someone's post, just ask yourself: do I really want to ban paper money and go back to gold?

    You have to pity the kind of people who buy into conspiracy theories. I find the following to be the saddest words on the internet: "Re: connection between Bilderberg puppet lady gaga and viral outbreak in ukraine "

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    Politics.ie Member Mitsui2's Avatar
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    Quote Originally Posted by CookieMonster View Post
    Not much they can do though. It's not like one could expect the staff/managers to club together to buy the kid his iPad what with them facing possible unemployment and Christmas on the way.
    Perefectly true in fact, perhaps, but that won't cut any ice at all in the PR stakes when there's a child and an illness concerned. I believe the correct technical term for their predicament in this instance involves the words "rock" and "hard place."

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    Quote Originally Posted by Sync View Post
    When you call administrators in, one of the first things they do is put a pause on payments to creditors so that a thorough check on where the money's going can take place and first preference creditors can be identified. Now when you have a voucher or gift card or credit note to that company, you are in fact a creditor, and a creditor on a very low rung of the ladder. So it means that you can't use these vouchers in the initial stage of administration, and possibly never in the event of liquidation.

    It's something that happens everyone, it hit Game recently enough as well. People will complain, but ultimately if it's just faceless spods, no one really cares. Unless you get a photogenic child with disabilities who's education is being impacted by the move. Like if that happens it'll cause significant negative publicity. But that won't happen right. Right?

    Oops.





    Now this KILLS Comet. Not just in terms of good will, but it's the sort of story that makes people realise "Hm. If I buy something from these guys tomorrow and it goes wrong, it's pretty likely I'm stuffed." So people won't shop there. At all.

    It's something Administrators need to stop doing. If you move into a business that has a chance of recovery, the most important thing is to provide BAU to the public. The second the façade slips, the mask crashes to the floor and cracks into pieces.
    When you write "Administrators" do you mean "Examiners"? Is "Administrators" the term used in UK law?

    I did not know that a Company could "call in" Examiners or Administrators for those who prefer the UK description of such an official. I was under the impression that an Examiner (or Administrator) could be appointed only by a Court - if the Court were satisfied that the Company is in financial difficulty and that there is a realistic chance that it could be saved.

    Please, someone, clarify these matters.

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    Politics.ie Member asknoquestions's Avatar
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    but aren't there legal rules for the order of precedence of creditors? If the administrators honour a gift voucher they could get sued for damages by creditors with a stronger legal claim, right?

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    The administrators "real" job is to make sure the bank or banks gets it's money back.
    Everyone else can go to hell.
    A few weeks before my grandfather died, he started dipping his feet in a bucket of lard.
    He went downhill very fast after that.

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    Quote Originally Posted by Sync View Post
    What you need is for the Administrators to realise what a negative effect not paying out on these leads to for the business you're meant to be trying to save and just pay out on vouchers/cards etc etc. They shouldn't need to be told this but evidently they do.
    It's unlikely they were given the option of making that decision. I'd be certain the staff were informed about what to do in cases of gift cards and were applying what they were instructed to do. I'd imagine by the time this got to the administrators it was already on it's way to the papers.
    Happiness is a dry martini and a good woman … or a bad woman.
    –George Burns

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    Quote Originally Posted by CookieMonster View Post
    It's unlikely they were given the option of making that decision. I'd be certain the staff were informed about what to do in cases of gift cards and were applying what they were instructed to do. I'd imagine by the time this got to the administrators it was already on it's way to the papers.

    agreed -

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