Another Dunne bites the dust

[Muz]

http://www.dailyrecord.co.uk/busines...CTpmhjmR6Fx.97

This is yet another firm I've seen expand relentlessly .. new kit everywhere, their name plastered on plant at shows etc, and I ask myself how do they do it ?

Well .. yet again as can be seen, they cant ! Meanwhile of course the rest of us have had to suffer lower rates, to enable us to compete with their failing business.

[Stock]

More information on this...............................

http://www.constructionenquirer.com/2016/07/20/dunne-bosses-blame-collapse-on-bankers/

News
Dunne bosses blame collapse on bankers

Grant Prior

The collapse of the Dunne Group is being blamed on bankers pulling a credit line for the concrete specialist at the eleventh hour.


Dunne ceased trading on Tuesday with the loss of 524 jobs.
Sources inside the failed firm contacted the Enquirer to reveal what happened in the final hours of the firm as it struggled for survival.
The source said Dunne received £4m in outstanding payments on Friday which was then due to go out to subcontractors and suppliers.
The insider said Dunned was “working within banking facilities” when it is claimed Santander suddenly reduced the company’s credit limit by £4m.
The source said: “After unsuccessful discussions to reinstate the limits om Monday Santander retracted all facilities . They confirmed this to Dunne’s solicitors overnight

“Once this came to light from 5 am on Tuesday senior Dunne directors personally addressed staff , personnel , subcontractors and clients in London , Scotland and throughout UK telling them that they could not ask people to work when there was no guarantee they would be paid.”
Administrator FRP Advisory closed Dunne down yesterday
The source claimed that Dunne’s “balance sheet far outweighs any remaining bank debt .”
The insider also claimed that the company was heading for a £6m profit.
FRP said Dunne “faced substantial trading losses on some contracts, leading to severe cash flow pressures.
It added: “Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.”
A Santander spokesperson said: “We regret any situation where one of our customers feels the need to appoint administrators.
“In this case, Dunne Group had been making substantial losses and despite having provided increased facilities on numerous occasions to keep the business trading, the company was insolvent.
“Therefore the management instructed the appointment of administrators earlier this week”

[v8druid]

More information on this...............................

http://www.constructionenquirer.com/2016/07/20/dunne-bosses-blame-collapse-on-bankers/

News
Dunne bosses blame collapse on bankers

Grant Prior

The collapse of the Dunne Group is being blamed on bankers pulling a credit line for the concrete specialist at the eleventh hour.


Dunne ceased trading on Tuesday with the loss of 524 jobs.
Sources inside the failed firm contacted the Enquirer to reveal what happened in the final hours of the firm as it struggled for survival.
The source said Dunne received £4m in outstanding payments on Friday which was then due to go out to subcontractors and suppliers.
The insider said Dunned was “working within banking facilities” when it is claimed Santander suddenly reduced the company’s credit limit by £4m.
The source said: “After unsuccessful discussions to reinstate the limits om Monday Santander retracted all facilities . They confirmed this to Dunne’s solicitors overnight

“Once this came to light from 5 am on Tuesday senior Dunne directors personally addressed staff , personnel , subcontractors and clients in London , Scotland and throughout UK telling them that they could not ask people to work when there was no guarantee they would be paid.”
Administrator FRP Advisory closed Dunne down yesterday
The source claimed that Dunne’s “balance sheet far outweighs any remaining bank debt .”
The insider also claimed that the company was heading for a £6m profit.
FRP said Dunne “faced substantial trading losses on some contracts, leading to severe cash flow pressures.
It added: “Additionally, rapid expansion led to pressure on working capital and a requirement for significant additional funding that was not available.”
A Santander spokesperson said: “We regret any situation where one of our customers feels the need to appoint administrators.
“In this case, Dunne Group had been making substantial losses and despite having provided increased facilities on numerous occasions to keep the business trading, the company was insolvent.
“Therefore the management instructed the appointment of administrators earlier this week”

And that was the bottom line ..... if they ain't got the capital to trade .... WTF should everyone else fund the bar stewards, with money THEY are owed ..... too many out there like it and as said screwing the ones who trade legitimately

If they're as healthy as they claim they wouldn't be in this position !!!! end of !!!

[Muz]

I remember seeing a firm local to me doing the same, lots of suppliers keen to do business with them, but they demanded suppliers charge the lowest of the low rates, some took it, I didn't, and when they finally went under, I got hold of the liquidators report, and all the fancy machines they proudly displayed their name on, barely had any Capitol in them, owned by the company. They were financed up to the hilt, it all looked good from the outside, but they just collapsed like a pack of cards due to lack of structural funds when a key funder pulled out. I see in the report that Stock posted, the bank repeatedly extended their funding, well, banks hate that approach , because it suggests chaotic management, and that always leads to the same outcome !

[245dlc]

I've seen seemingly small companies usually equipped with a Bobcat, mini-excavator, and a dump truck grow in to large companies in a year or two and get close to complete failure but mysteriously kept afloat. Found out that many of these companies are financed by Evangelical Mennonite Churches and their congregations. The one outfit I'm thinking of in particular was started by a guy that had only really spent time operating Bobcat's grading around new houses and within 5-6 years had grown in to commercial and residential excavation, trucking, and attempted heavy/civil, demolition, and concrete recycling. While other outfits that started about the same time as him had grown much much slower and had better management and had less employee turnover! So I guess if you praise jesus enough and go to enough cult meetings I mean church you can be successful too...