The OFT doesn't seem to be able to leave the Supermarket giants alone lately! This week, we should see the publication of the final recommendations from the Competition Commission in to the Grocery Trade ( read supermarket chains), after the OFT referred the matter to the CC in 2006. Will an Ombudsman for the trade be recommended or not? That's one of the big questions that will soon be answered. Then last week, almost in preparation for this one, we learn that the OFT has launched an investigation into cigarette and toiletries price fixing amongst the large supermarket chains and the cigarette manufacturers. At this rate,Tesco and the like will soon be developing a serious bunker mentality. Why is it ,they ask, we do everything we can to help consumers yet get all this criticism? Any suggested answers from anyone?

April 28, 2008 | Permalink | Comments (0) | TrackBacks (0)

Companies House continues to warn companies about the need to be vigilant concerning identity theft. However, company hijackings of bona fide companies continue apace- I've just been told by Graydon colleagues of one Middlesborough based company that was shocked to discover its registered office had changed without consent, its directors had resigned and been replaced with new ones , and a set of fictitious 2006 accounts had been filed at Companies House too to complete the scam.

I bet the real director was wondering whether he had suddenly lost his marbles or was suffering from a severe case of amnesia- either way, it just shows what can happen to a corporate identity if you don't make regular checks of your file at Companies Registry. 

April 16, 2008 | Permalink | Comments (0) | TrackBacks (0)

Small businesses suffering from the double whammy of tougher borrowing opportunities from banks because of the credit squueeze, and delayed late payments from customers, are urging the Government to rethink their legislative approach to the latter in order to safeguard future cash flow. Not every business can afford invoice discounting  or factoring in order to have a healthy inflow of cash, and small suppliers are reticent about adding interest charges to overdue bills as allowed under the Late Payments of Commercial Debts (Interest) Act of 1998 because they fear reprisals from large clients taking business elsewhere. It's a bit like giving an eight stone man a pair of boxing gloves and inviting him into the ring with a heavyweight without a referee- there can only be one winner in that type of bout.

The 1998 Act doesn't work, and large companies in particular are holding onto suppliers money for longer and longer (after all, it's the cheapest form of finance).  What can be done? Recent Interest rate cuts are helpful to businesses, but if a trade supplier's money is in its bank account instead of in it's client's accounts, the need for additional bank borrowing may not exist at all.

April 14, 2008 | Permalink | Comments (0) | TrackBacks (0)