Six warning signs your company may be on the verge of collapse
A panel of experts share the warning signs of impeding business doom, and how to go about getting your company back on track.
Hundreds of Australian businesses collapse each year, owing millions to creditors.
While the likes of pie franchise Pie Face and jewellery chain Bevilles have come out the other side, these examples are in the minority.
According to Cliff Sanderson, chief executive of corporate recovery firm Dissolve, voluntary administration will only save around 10% of companies. It is far more common for the company’s assets to be liquidated.
“Only around 33% of voluntary administrations result in a Deed of Company Arrangement, commonly called a DOCA … [which] is simply a formal deal between a company and its creditors,” Sanderson told SmartCompany.
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