vulture capitalist thread.

[Milzy]

Some private investment companies can successfully turn around a failing business.
How do you know if they are just only vulture capitalists though? Rcapitol is taking hold of a company many friends work for. I don’t think they know what’s coming. Do you think they’d re-stucture the staff & remove any dead wood?
The worst case scenario is sell things off separately & get rid of the work force. Then again this company may be brilliant at turning things around.

 

[CXRAndy]

Other option business collapses, everyone loses job.

 

[Milzy]

Other option business collapses, everyone loses job.

Would they have to claim redundancy from the state & would it be the same amount?

 

[CXRAndy]

Would they have to claim redundancy from the state & would it be the same amount?

They may get almost nothing if the business suddenly goes under. The staff will be at the bottom of the pile re any payments.

Creditors, like the banks, the Inland revenue the liquidator accountants will get the first dibs, then suppliers will get pennies on the pound (for outstanding invoices or materials). Last will be staff for redundancy.

Straight to the unemployment office.

 

[AndyRM]

They aren't there to turn things around for anyone other than their investors. Depending on length of service etc your pals may get a decent deal if redundancy is an option.

It all depends on their circumstances really

 

[BoldonLad]

Would they have to claim redundancy from the state & would it be the same amount?

In terms of Statutory Redundancy, there are well defined rules, although, the amounts are not generous, and are based on the employee's age and length of service. Those with less than 2 years service get zilch. You can calculate the amount here:. https://www.gov.uk/calculate-your-redundancy-pay.

If the Employer become insolvent: https://www.gov.uk/your-rights-if-your-employer-is-insolvent/your-rights

Anything above and beyond this at the discretion of the Employer, unless there are specific Contractual arrangements in place.

 

[Milzy]

Administration offers the business a chance to pull out of insolvency by appointing an administrator and restructuring the business. In this case though I can’t see a good turn around. The reputation is destroyed & there is too much dead wood. How can you run a successful business when most of the staff actually want redundancy's?

 

[BoldonLad]

Administration offers the business a chance to pull out of insolvency by appointing an administrator and restructuring the business. In this case though I can’t see a good turn around. The reputation is destroyed & there is too much dead wood. How can you run a successful business when most of the staff actually want redundancy's?

The situation where the "dead wood" becomes enough to be terminal (ie the Competent see the writing on the wall and quit for other jobs) is not uncommon, in my experience (admittedly some years ago, I have been retired for 18 years). However a business rising from the ashes, having rid itself of the deadwood is not uncommon either (again, in my statistically insignificant experience).

 

[Milzy]

The situation where the "dead wood" becomes enough to be terminal (ie the Competent see the writing on the wall and quit for other jobs) is not uncommon, in my experience (admittedly some years ago, I have been retired for 18 years). However a business rising from the ashes, having rid itself of the deadwood is not uncommon either (again, in my statistically insignificant experience).

I get that but this place is a cesspool so no talent would put up with the complex characters to rise it from the ashes. If they get a lot of orders, nobody wants to work for them. Doomed I tell you.

 

[BoldonLad]

I get that but this place is a cesspool so no talent would put up with the complex characters to rise it from the ashes. If they get a lot of orders, nobody wants to work for them. Doomed I tell you.

Well, it would appear you know more about the situation than I do. Maybe the Vultures will lose out? We can but hope.