ELR caught out over station canopy project

ELR work on canopy hindered by collapse of supplier.

http://www.eastlancsrailway.org.uk/...cks-steam-railway-project-off-the-tracks.aspx

 

I wonder whose pocket the £18k went into. I'd bet that it wasn't there when the receivers were called in. It should be illegal to accept up front payment from a client while knowing that the contract would not be honoured.
I can remember about 20 years ago when a long established building contractor in Liverpool was known to be in financial trouble. A glazing sub-contractor told them that they could not finance an important part of the job, so the builder gave them a cheque for £40k. They promptly went to the bank & cashed the cheque , removed the money from the company & then called in the receivers. The builder went bust shortly afterwards.

Bob.

 

So much time and effort has gone into this project, plus the money of course and how it was raised, what a very great loss for the ELR, I do hope this is resolved in some way, how sad.

 

Also bad for those suppliers who won't get paid, I've experienced it where a customer ordered a large print run of their paperwork and then went in to receivership three weeks later! They must have known it was on the cards so why place the order? The announcement about Robert Horne was somewhat of a surprise to the print industry too, although there's lots of belt tightening going on. The much mentioned economic recovery has yet to show it's face for us.

 

Whilst I don't know the details of this case, I have known others where a subsidiary company (as in this case) have been as surprised as the client when the parent company has gone into administration so who knows. Bad news for all though!

 

http://www.bbc.co.uk/news/uk-england-manchester-32265926

 

I just cannot believe a charity paying money in advance. Do they not read NP's "Scams" thread?

 

I would have thought it unlikely that their "credit rating" would of allowed them to get anything without going pro forma?

This is nonetheless very unfortunate but it is very common IMHO that it is very easy for a company to go insolvent and fleece the little fish like this. Blame the government (& not just this current shower) as it's been a problem for a long long time. . . .