Leading global companies are cutting ties with their customers most at risk
of collapsing as they take drastic steps to protect themselves from the harsh
Ernst & Young’s Opportunity in Adversity, Responding to the Crisis study
polled 337 leading companies and 31% said they had cancelled contracts with high
Nearly a quarter said at least one of their key customers had collapsed.
46% of respondents said that that they had to narrowed their supplier base to
obtain more favorable terms, but 42% said they had broadened their supplier base
to ‘reduce the impact of the failure of an individual supplier,’ E&Y said.
‘Here the response to adversity is driving diametrically opposed behavior
from different companies,’ E&Y added. ‘A supplier is clearly almost equally
at risk of losing a customer as gaining a new one.’
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies