- Set up limited Co. to create a small retail shop.
- Grow gently, with help from Banks until you have a portfolio of
- Later on, overall cash flow is just OK but some of the shops are not doing so well, maybe even a few are losing money. A couple are very profitable (note their details for the next phase).
- Go to Bank for more short-term cash. Appear to be surprised when they ask for guarantees, Reply, "Why, I've only extracted ten times the sums I'm trying to borrow. how dare you ask me to risk my money!!"
- Put whole Co. into bankruptcy. Sack lots of staff, let them rely on State Redundancy money.
- Weep crocodile tears. Go to Press.
- Buy back the most profitable shops from the administrator for a sum well less than the sum sought from the Banks to keep the whole chain going.
- Continue trading as XYZ (2009) Ltd., with the profitable shops.
- Of course the creditors of these profitable shops are creditors of the original company, so they can whistle, as can the employees. Many go under but their failure is a tad more genuine
- Go forward, un-encumbered by any debts owed on the profitable shops.
Wow, now real profits can be made AND you can tell the Press that you've saved the shops from the wickedness of the Banks. Given that you choose the newspaper correctly, you can even get some sympathy for your noble efforts. WIN, WIN, WIN!
- And the creditors of the profitable shops, who are the same as those supplying the loss making shops.......... they can whistle.
- And the employees... well now they know the sort of shop-keeper they have been working for, so their comments may be a little critical.
It's all legal folks - so start today with a shop or two .......... You'll also need to be a tad high profile and have the ear of a Tory Newspaper when you do the old "Bankruptcy Two-Step"
What larks.....