Comments Off on Parcel delivery company City Link in administration.

Parcel delivery company City Link in administration.

citylink in administration

2727 staff may be losing their jobs after City Link went into administration. Founded in 1969, they were once the UK’s leading parcel delivery services, but stiff competition in the last few years, towering debt put paid to the business. It was possibly the worst time to inform employees of the decision, especially when so many worked Christmas Eve.

On the city link website the following message reads:

On 24 December 2014 City Link Limited was placed into Administration and Hunter Kelly, Charles King and Tom Lukic of EY were appointed joint administrators.
The business has ceased to accept new parcels from customers and its depots will remain open for a short period of time to enable customers or intended recipients to collect parcels. Those customers who placed parcels with City Link on Christmas Eve for delivery are urged to go to the depot to retrieve their parcels as soon as possible.

My personal experience of City Link was that they were never good. I always found delivery cards stuffed through the door, not filled in correctly, and they would never re-deliver, instead I had to always go and fetch my parcel from some random depot miles away from anywhere, which kind of defeats the purpose of express delivery.

Source: City Link, Sky News

Who does Kerry Katona blame for having to declare bankruptcy twice?


It amazes me how celebrities think they can live the good life, spend spend spend and not think about the consequences. Sadly one doesn’t have to be a celebrity to get into the kind of trouble that has seen Kerry been declared bankrupt twice in 5 years.

But who is at fault or to blame for allowing Kerry to fall into financial ruin twice?

The cowboy loan shark sites such as Cash Lady, which funny enough was the company Kerry was recommending, Wonga, Pounds to pocket etc. They offer a quick money solution at ridiculously high interest rates (high being exorbitant by any sane or intelligent person. We are talking hundreds and even thousands of percent).


Comments Off on Dionne Warrick bankrupt.

Dionne Warrick bankrupt.


It is funny (not) how these ex rich folk always blame bad financial management after they declare bankruptcy. There they have been living the high life for many years and not paying the correct tax and then boom, one day it all catches up on them.

Source Link: Sky News

Comments Off on Atari playing on despite filing for bankruptcy.

Atari playing on despite filing for bankruptcy.


The U.S. arm of Atari, the iconic video game company that created “Pong,” filed for bankruptcy on Monday.

But Atari will live on. The move is aimed at breaking the American branch away from its unprofitable French parent company.  The firm that gave the world Pong more than 40 years ago wants its US business, along with three other companies, Atari Interactive, Humongous, and California U.S. Holdings, to be separate from the French parent company known as Atari S.A




Comments Off on Gary Dourdan of CSI is bankrupt.

Gary Dourdan of CSI is bankrupt.


You gotta wonder how an actor of his stature and fame can be bankrupt? But it’s true according to

Comments Off on OnLive laying off staff & filing for bankruptcy.

OnLive laying off staff & filing for bankruptcy.



Source: Android and me

Comments Off on Ex Popworld presenter Miquita Oliver files for bankruptcy.

Ex Popworld presenter Miquita Oliver files for bankruptcy.


Source: Sky News

Comments Off on Kodak files for bankruptcy.

Kodak files for bankruptcy.


19000 jobs maybe affected by the bankruptcy.
Source: BBC News

Comments Off on Raymond and Danny Grehan declare bankruptcy.

Raymond and Danny Grehan declare bankruptcy.


Source: Reuters

Comments Off on Every 3.69 minutes someone is going bankrupt (scary!)

Every 3.69 minutes someone is going bankrupt (scary!)

According to Credit Action, the debtors’ charity, people go bankrupt at the rate of one every 3.69 minutes. A property is repossessed in the UK every 11.4 minutes. Spare a thought for the hard-worked staff of the Citizens Advice Bureau who handle an estimated 9.500 new debt problems every day. A staggering 16,348 individual bankruptcy petitions were made in the first three months of this year, along with 2,177 company winding-up petitions due to financial difficulty.

Source: The Independent

Comments Off on Mexico airline Mexicana files for bankruptcy.

Mexico airline Mexicana files for bankruptcy.

Mexico’s biggest airline, Mexicana de Aviacion, has filed for bankruptcy protection after failing to reach a deal with trade unions on cost cutting. The heavily-indebted airline said flights would continue while it restructured its finances. Mexicana had proposed deep pay cuts for pilots and crew, as well as a 40% reduction in the workforce.

Mexicana is the biggest airline to go bankrupt since Japan Airlines. It does not come as a big shock: Mexican airlines have faced tough conditions lately, battling the deepest recession in the Americas.

Source: The Economist

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Comments Off on GM file for chapter 11 bankruptcy.

GM file for chapter 11 bankruptcy.


General Motors has finally filed for Chapter 11 bankruptcy after weeks of speculation, bidding wars etc.

The restructuring is suspected to change GM in a big way, with over 20000 US workers likely to lose their jobs as GM streamlines its operations. GM currently has 173000 employees across the US, Canada and Mexico.

US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors.

US Taxpayers will end up with a 60% stake in GM, with the union, its creditors and federal and provincial governments in Canada owning the remainder of the company.

Video from

Chapter 11 – what does it mean for a business?


Firstly it’s a term widely used in the US. Wikipedia defines Chapter 11 as the following:

When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under Chapter 11. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.

Typically there are different chapters of bankruptcy depending on how “deep in the shit your company is in”. However chapter 11 bankruptcy, the lesser of the two common bankruptcy filings, allows a company to continue business while sorting out its financial affairs. So if you are doing really badly and owe tons of cash to others, this chapter allows you to continue doing business while putting yourself into even more debt, well it’s meant to bide a business some time.

After a Chapter 11 Bankruptcy has commenced, the debtor has 120 days from the day the order for relief is granted to submit a reorganization plan to the Office of the United States Trustee. The essential element in any reorganization plan is careful planning. This reorganization plan, prepared by an accountant, is often very long and detailed.

The most important thing to be kept in mind is that filing for bankruptcy should not to be taken lightly. It reflects your credit rating for many years.

I will cover the rest of the chapters in future posts. At the moment Chapter 11 appears to be the most common form of bankruptcy and I am seeing a lot more news recently on it.

Below are some of the companies that have filed for Chapter 11 in the past 48 hours:

Companies that filed for Chapter 11 bankruptcy protection.