More drop off the wall into the mire

My post about Ten Big Businesses Hanging on the Wall is now about to be realised quite soon. It is a very sad reflection on our society that businesses that would normally be viable are in such a precarious position. We are living in a giant South Sea Bubble, which is still being blown up.

As Woolworths was the first major casualty, we now have MFI, Whittards, Zavvi, Adams, Officers Club and fashion retailer USC. All are in adminstration but Whittards and USC are doing deals to save parts of these businesses.

Yesterday it was announced that those with Zavvi gift vouchers (received at Christmas) could not use them in stores. They were effectively useless. However, Zavvi continues to trade. So it is OK to take cash now, but not to honour cash taken in advance of a purchase. I have to hand it to these accountants. Remember, receivers are in a recession-proof business. They have ring-fenced, copper-bottomed, and diamond-tipped their stash! They get their money before anyone else does.

It is interesting to note that these so-called experts were so dilatory in warning us all of the nonsense of the sub-prime fiasco and all the other "accounting practices". Perhaps it is all self-fulfilling? Create a giant mess and then gorge on the results.

Am I being too unkind to them?

Posted in: credit crunch,recession