Once again, banks and other lending institutions have been caught asleep at the switch. They have either been bamboozled by fast taking owners or simply failed to act in their own best interests, or perhaps both. As we all know, most businesses who find themselves in such dire financial straits didn’t get there overnight. No, the process was long and slow, like suffering from a thousand small cuts, not a major amputation. Unfortunately, the banks didn’t notice the blood starting to pool on the floor until it was much too late and pouring over their boot tops. Who were the account reps, fresh faced recent graduates with little to no experience? How do accounts receivable get overestimated by 9million and for many years? We all feel bad for the employees and suppliers of this poorly run operation because they will be feeling the bulk of the pain while the principals will walk away virtually unscathed having already stripped whatever equity might have existed months ago. Criminal behaviour on all fronts….including the extreme negligence displayed by the blind lenders!
