Financial Difficulties, Administration
The last set of financial statements by IBS-STL UK for the year ended 28 February 2009, and approved by the Board on 6 July 2009, refer to having had a "challenging year for the Charity". This had been characterised by "a combination of weak economic conditions in the UK, and a difficult move to the new SAP IT system", leading to a "significant operational loss" for that year. The report highlighted the financial risks which the Charity was exposed to, particularly those associated with loans, leases, and trade debtors and creditors. There was however no indication that these risks would be so severe as to result in the collapse of the business just four months later.
On 16 November 2009 IBS-STL UK announced that due to "a succession of financial problems, in particular the failed implementation of a new SAP computer system in October 2008, the effects of which were exacerbated by the economic downturn" a decision had been taken to "exit the business" at which point a buyer was sought. However, no sale arrangement could be made and IBS STL (UK) formally entered into Administration on 18 December 2009. Two partners from Baker Tilly Restructuring and Recovery LLP, Manchester, were appointed by the High Court as joint administrators. The ensuing process of administration resulted in the following outcome for the principal trading activities of IBS-STL (UK) :-
Read more about this topic: Send The Light
Famous quotes containing the word financial:
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)