The thing about capitalism is there is always something to profit from, even in economic hard times. So with The Australian reporting “warnings of an upcoming surge in business insolvencies”, it’s as good a time as any, we guess, to list industry group Insolvency Australia’s annual ranking of the country’s liquidators — topped this year by Mackay Goodwin chief executive Domenic Calabretta.
“I expect there to be a new wave of insolvencies for the next financial year as industries are impacted by discretionary spending and higher energy prices being rolled out by the recent federal budget,” Calabretta told the Oz. Calabretta “secured” 150 insolvency appointments in the past financial year. And look how he wears each one on his face:
Indeed, this is what struck us most about the piece: the shifts in tone. With paragraphs veering between worrying economic forecast to sober analysis to a celebration of the liquidator industry — shout out to the highest-ranked woman on the list, FTI Consulting senior managing director Joanne Dunn, arguing for greater gender parity in the male-dominated industry — there was probably no accompanying images that wouldn’t be a little jarring.
Anyway, here is group of people smiling broadly in a story about how there’s going to be an imminent surge of business closures:
Guys, take a lesson from funeral director websites — gentle, melancholy smiles only.
i still remember when my business went down during “the recession we had to have” and watching thousands and thousands of dollars go to the liquidators, money that should have gone to suppliers and other creditors – gutting
Who can look gentle and melancholy when the potential millions in profits are forcing your face into a rictus of glee?
As an ex “pre insolvency adviser”, these liquidators are only out for themselves. They extract every dollar possible, delay delay and yet their legal obligation is for the benefit of creditors? It is a rort, and yeah phoenixing is under the radar now by toothless ASIC, but what about these mere chartered accountants? The ones I used I’m glad to say are either banned, in jail, or under supervision.
Insolvency practitioners including Bankruptcy Trustees as well as Liquidators are a power unto themselves and it will not stop, which is to the detriment of the mums and dad creditors who don’t know their rights.
Liquidators are pretty mercenary. They will take everything they can legally get, thrutlessly ride their staff but only pay them the minimum. They do alright. Best not to fall into their hands.
About 45 years ago I was temping at a now international accountancy firm. In the bankruptcy section. Postage for mail was 11¢ a letter. A charge of $25 per letter was added to the bankrupt business costs. Another occasion of employees losing out of their legal dues was with Ansett bankruptcy – my friend who worked in admin lost lots in unpaid long service leave and even annual leave. Not sure compulsory super was law at the time.
Sure fees have increased since that time – so yes to smiling faces for some.