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Breaking the Bad News

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28 September 2009

Breaking the Bad News

Since Savekers Limited, my 106 year old family business, went into administration in March 2009, my 3rd cousin and I have had a personal guarantee hanging over our heads. I have to say that both of us have chosen to put this to the back of our minds... until last week! During the administration process I proactively helped the IP's to sell the business - which we managed to do. At the time I ran up £75 of expenses which were to be covered by the administrators. 6 months on and after several chases I received a cheque. The last 6 months have also been a time for the administrators to sell our 60,000 sq ft property just on the outskirts of Birmingham City Centre. We were assured that this sale would more than likely satisfy the amount we had guaranteed to the bank. It always amazed me that during the struggle and lack of salary that my cousin and I endured at times, the personal guarantees we were forced to accept to save the business seemed irrelevant to fellow board members, the Union and senior employees who were all aware of them. I wrote an email on Friday to the IP's to acknowledge receipt of the £75 only to receive this "I’m glad you emailed, need to let you know about an offer we have had on the property.  It is at the lower end of valuers estimates but we have had very little interest to date and they have recommended we accept.  The offer has been forwarded to the Bank for their consideration and I am waiting to hear back from them…  I just wanted to let you know that there is a strong possibility at this stage that the Bank will have a shortfall ..." And there you have it, on a Friday afternoon at 4pm the IP's prove once again they don't have a clue about people and how to deal with them. This is also considering that when I called them in initially, during the first meeting they told us "Don't worry we'll look after you". Personally I am ready to deal with whatever the Bank have to do - but receiving emails like the one of Friday made me so angry and yet not surprised in the slightest.