Crisis Planning: How to reduce the domino effect

When multinational companies fail, inevitably the headlines are numerous as the devastating consequences for its employees are recognised. However, there is another group of stakeholders who will also suffer, their trade creditors.  Whilst it is probably assumed that the largest companies don’t trade with smaller owner-managed business directly, the supply chain further down the line may well include small and medium sized enterprises, and they will inevitably feel the knock-on effect in the coming months, just as they did when large retailers failed, or even motor manufacturers announced they would be closing their UK plants.

Here are five key steps all businesses should be taking to review the impact large insolvencies could potentially have on their own trade in the future:

As economic conditions, lifestyle or generational preferences and technological advances seemingly change without us noticing on a daily basis, sectors and the businesses within them have to look up to recognise what is happening and evolve.  If they don’t manage to do that in a timely way, there can be disastrous consequences, and just like Thomas Cook, Jamie’s Italian or Carillion, who all struggled for years but kept hanging on, eventually many just lose their fight.  All business owners should be looking at their own business and those other sectors which they are reliant on and take steps to avert future ‘big-name’ collapses affecting your own stability.


For help with crisis planning and business advice post-Brexit, please contact us on 01904 655202, or email enquiries@hghyork.co.uk

Alternatively, if you’d like to learn more about how we can help you or your business, take a look at our services page. Whether you’re looking for expert advice, tailored solutions, or support to achieve your goals, we’re here to make a difference.