Since Savekers Limited, my 106 year old family business, went into administration in March 2009, my 3rd cousin and I have had a personal guarantee hanging over our heads. I have to say that both of us have chosen to put this to the back of our minds… until last week!
During the administration process I proactively helped the IP’s to sell the business – which we managed to do. At the time I ran up £75 of expenses which were to be covered by the administrators. 6 months on and after several chases I received a cheque. The last 6 months have also been a time for the administrators to sell our 60,000 sq ft property just on the outskirts of Birmingham City Centre. We were assured that this sale would more than likely satisfy the amount we had guaranteed to the bank.
It always amazed me that during the struggle and lack of salary that my cousin and I endured at times, the personal guarantees we were forced to accept to save the business seemed irrelevant to fellow board members, the Union and senior employees who were all aware of them.
I wrote an email on Friday to the IP’s to acknowledge receipt of the £75 only to receive this
“I’m glad you emailed, need to let you know about an offer we have had on the property. It is at the lower end of valuers estimates but we have had very little interest to date and they have recommended we accept. The offer has been forwarded to the Bank for their consideration and I am waiting to hear back from them… I just wanted to let you know that there is a strong possibility at this stage that the Bank will have a shortfall …”
And there you have it, on a Friday afternoon at 4pm the IP’s prove once again they don’t have a clue about people and how to deal with them. This is also considering that when I called them in initially, during the first meeting they told us “Don’t worry we’ll look after you”.
Personally I am ready to deal with whatever the Bank have to do – but receiving emails like the one of Friday made me so angry and yet not surprised in the slightest.
So today my employees were told that the company is in administration and despite a slight relief I feel as if my heart has broken just a little bit more.
I felt the duty of addressing everyone before the administrators did – I did my best. All I could say was how sorry I was – from me personally and that all the efforts we’d all put in couldn’t prevent this happening. Although standing with 60 people, I was lost and alone.
My Mum called me on my mobile just as everyone had been told and I couldn’t hold it together anymore. Again, I needed my Mum and she said everything that was needed.
People that I didn’t think cared hugged me and shared in the hurt – we were all united, all scared and confused, some saying their good byes and others calling home to tell wives and husbands – others left without speaking. Emotions were running high and we comforted each other. The cold headlines that state company’s are in administration never talk about the human fallout, the tears and worry. Statistics never explain the full picture. We are human and we hurt, no matter who we are.
Tomorrow will be another day but for the rest of today we remain at a loss with each of us needing the comforts of home and loved ones. Tonight is for grieving. Tomorrow we rebuild.
It seems to be the norm at the moment… we’re all too familiar with headlines such as:
“Woolworths goes in administration” ….. “The downturn on the high street has claimed its latest victim after USC, … USC in administration” ….. ” Around 850 people lose their jobs at the failed childrenswear chain Adams when administrators announce the closure of 111 stores”
I could go on.
But what does this really mean? What IS administration?
Well as I mentioned in an earlier Blog, my company has been granted an administation order and what it means to us is heartbreak, job losses, lost skills, lost hope, the end of a significant chapter, lost legacy etc. BUT it also means the beginning of a new chapter.
The process has been awful. Administrators and insolvency practitioners, like banks, are simply doing a job and not with much humanity or sympathy it has to be said. The same applies to solictors – or certainly the ones involved in this instance. We are using a firm of lawyers that incorporated our company in 1935 but the contact there when carrying out the legal requirements for administration simply said, as I signed the paperwork “oh, what is it you did again?” and that was it.
I left the solicitors in tears, one because of the duty and upset and two because of the cold and unfeeling chap I’d encountered. The procedure to him had been “come with me”, “sign here”, “repeat these words after me” and finally “that will be £5″.
I sat in the car and gathered myself together to face what tomorrow had to bring… an announcement to the work force many of whom I’ve known all my life and others who are dear friends. No matter what or how you look at this part of the process, it’s going to be awful for all concerned.
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