Phoenix traders – businesses that rise swiftly out of the ashes of a prior, failed venture – have become more visible during this recession.
Whilst most would agree that every well-planned and potentially profitable venture should be given a chance, how do we manage the rogue directors of repeatedly failed businesses? The directors of those organisations that cease trading one day owing thousands to numerous creditors and yet somehow manage to emerge – unscathed – a few days later with a slightly altered company name? Sometimes time and time again – owing yet more creditors, causing more heartache – but seemingly escaping any real consequences.
And why is it that those within the industry remain silent about these repeat offenders? Is it due to perceived professionalism? A false sense of loyalty? Is it a general unwillingness to rock the boat? In their collective silence, are the manufacturers, distributors and suppliers within the printing industry then complicit with the directors of the so-called phoenix operations?
The industry as a whole must be seen to be encouraging responsible trading. The DTI wants to promote responsible entrepreneurial activity to foster and support economic growth. However, the guidelines need to be tightened up now.
Simply put, the current rules don’t appear to be working. Somehow, surely, the serial offenders need to be weeded out, and fast, before they give the rest of the industry a bad name.
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