Editor's Comment

01-Apr-2009

The masses are restless, and ill will is erupting in the direction of people and companies who are perceived to have benefited financially while others have lost jobs or savings.

It is beginning to dawn on consumers that some failed firms have managed to recreate themselves and go on to do
more business after pre-packaged administration sales, having caused their customers and suppliers great loss. Just ask customers affected by such a situation at wedding list service Wrapit, for one very public example.

In recruitment, the pre-pack deal is all too familiar. On the one hand, it saves jobs and helps struggling businesses
regain their footing. On the other, there is resentment and anger aimed at pre-pack beneficiaries for seemingly walking away care and debt-free.

The time has come for tighter regulation of pre-pack deals. Those who take advantage of them should be required to embark on a repayment programme, with low initial payments, so that creditors do not lose out completely. Beneficiaries should also be denied credit until steady repayments are well underway.

It’s a matter of honour.

DeeDee Doke
Editor