Couldn't agree more with the sentiments expressed by credit checking specialist ICSM in yesterday's news story. The issue of supposedly top-notch clients who end up not being able to pay has been bothering me for the best part of six months now, to the extent that I'm of the view that effectively there's no such thing as a blue-chip client anymore.
It's difficult, though, to be unconditionally sympathetic to firms left out of pocket by the failures of Woolworths and MFI in particular, because the problems at those companies had been widely telegraphed for months beforehand.
But elsewhere it does seem that a change of mindset is required. I wonder, for example, what sort of print bills will be left in the wake of the Waterford Wedgwood administration? The group owns luxe brands that generate a tremendous amount of print - giftwrap, stationery, point-of-sale, bags, brochures (of course), packaging, price books in 12 European languages... the list goes on and on. And much of this print would of course be of extremely high quality. Maybe a buyer(s) will be found for the business, they'll trade out of it and everyone will be paid. Or maybe not. It's ironic that a PM contract with the company was among the "jewels" cited by RR Donnelley when it acquired Astron back in 2005. Boy does that seem a long time ago now.
The other biggie at the moment is of course retail investment group Baugur, and what will happen there next. It's all "business as usual" talk at present, while various sales out of administration are negotiated, but I think Andrew Parker (ex-MD at Quebecor World UK) and Wyndeham's Paul Utting will be able to attest that when your parent company is in some form of creditor protection, it can turn out to be anything but.
Where is the good news? It seems like fast food firms such as Kentucky Fried Chicken, Subway and Domino's Pizza can be deemed the new blue-chips, as they're among the few firms doing OK and expanding their operations at the moment. Oh, and if you're printing for HM the Queen, then you're probably ok too.
