Stopping your business from being grounded
As the fourth significant UK airline to go into administration since 2017, a worrying precedent has been set. Whilst the impact of the coronavirus outbreak on demand for air travel was only partly to blame for Flybe’s collapse, it is clear that the industry is going to take a savage hit in the coming weeks and months. The end of the line for another troubled European operator, Alitalia, is widely rumoured.
It is still early days, but the unprecedented impact of coronavirus is already causing massive challenges to people, business and supply chains. The virus could be the tipping point for those businesses already facing financial difficulties or with tight margins. The hospitality, travel and manufacturing sectors are likely to see many casualties as the problems caused by coronavirus worsen.
Company directors should already be putting contingency and continuity protocols in place as demand slows and payments become delayed, including:
- Monitoring budgets closely
- Keeping a tight hold on borrowing
- Evaluating risk exposure
- Considering rescue strategies
- Reviewing contracts
- Seeking professional advice
These measures are especially important for industries that rely on tourism as their main source of income. Globally, people are likely to be staying much closer to home until the coronavirus outbreak passes, and at present, it is unclear as to when that will be.
For further advice on how to protect your business from collapse, please contact Michael Mulligan on 0207 644 432 or another member of the restructuring, recoveries & insolvency team in your local office.
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