WoodallServices
Well-known member
I think you’re probably a bit optimistic with “half a million quid”. Who have they employed in these new places when there’s nowhere open and nobody working?It might save them half a million quid, of pure cashflow. Without positive cashflow, even a good business can fail extremely quickly.
The leases and mortgages they have took on, have meant they have probably took on 20-50 staff per location, too. If you bin the expansion, you bin the jobs too. That would have been say another 200, on the dole, rather than on furlough.
And yes, if they're saying they can pay it back, I would assume they can, if they can't then the staff don't have a job, which is a much bigger problem than losing/ lending 10%. Lenders will look at them more favourably if they go back to trading well over summer.
Banks don't want risk now, that's up to them. But if the banks don't want to lend then there goes 500 jobs. What then?
Also, if it's purely for short term cashlfow, banks may be reluctant, as they like to fix loans against assets, so that if it all goes t*ts up, then they have something to take. I expect all their property will be leased or mortgaged, so they may not have much to loan against.
The daft thing is, if they wanted a loan for a digger (that would be of no use to them), then they would probably get it.
What the accountant can hide and not making a profit are two totally different things. The poor devils on minimum wage won’t be able to write things off against tax like a company will.
We’ll have to agree to differ because you clearly think the low paid should get down on theirhands and knees and kiss their employers @rze for their job and I don’t!