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Blame bad management, not Brexit for insolvencies

Insolvencies are high but why, Blame bad management, not Brexit for insolvencies
British Steel is one of several high-profile insolvencies in 2019

Corporate insolvencies are on the rise, but why? Some ‘experts’ have been quick to associate Brexit with the collapse of manufacturer British Steel, fashion retailer Arcadia, and the Jamie Oliver Restaurant Group – but I doubt these collapses have anything to do with our decision to leave the European Union.

When business was booming in the early 2000s, Arcadia could’ve bought online fashion retailer Asos. But they didn’t, choosing instead to focus on bricks and mortar revenue streams.

Insolvency was always on the cards because Sir Philip Green is a first-class dealmaker rather than a retailing genius.

Today, Asos is arguably a bigger company and although Arcadia has worked hard to improve its online presence, the business remains crippled by the burden of its high street stores, which has nothing to do with Brexit.

And it’s the same with Jamie Oliver’s restaurants; their collapsed has nothing to do with Europe, and everything to do with bad products and poor management.

In a free market economy you either deliver competitive services and goods or perish. The sad truth is: Jamie’s restaurants, the Arcadia Group, and British Steel faltered because they didn’t follow these simple rules.