BDO: Poor control of cash key reason for failure

BDO: Poor control of cash key reason for failure

Business recovery experts highlight the ‘Top Ten’ reasons for retail failure

BDO Stoy Hayward has highlighted poor financial control as one of the key
reasons for business failure at a seminar hosted in partnership with R3, the
Association of Business Recovery Professionals.

The firm highlighted the this issue as part of its ‘Top Ten’ reasons for
failure, which also included inadequate response to increasing competition,
inability to react quickly to changes in the market-place as well as failure to
tune into the needs of the customer.

Mike Prangley, partner, BDO Stoy Hayward, said: ‘When it comes to the crunch
– most struggling retailers fail to realise that cash is “King”. It’s lack of
cash not lack of profit that causes many businesses to fail.’

’Key ‘cash crunch points’ include quarterly rent payments, honouring wages
& salaries as well as looming VAT and PAYE payment dates,’ he added.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

5m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

5m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

6m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

6m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

6m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

6m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

7m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

7m Emma Smith, Managing Editor