After the murder engineering firm First Tech’s chairperson Jefferey Wiggill almost two months ago, the company has been liquidated to service unpaid debts. Not only will the provisional liquidation affect the employees of the company’s subsidiaries but other companies indirectly associated with First Tech will be affected too.

Michael Heyl, the Director of First Tech supplier, Smart-Joint SA said:

I am a director of a company, which has not even been trading for a year, and I have been affected by the liquidation of the First Tech Group.

We are a wholesaler and distributor of all thermoplastic fittings and machinery servicing the mining, agriculture, water transportation, sewerage and gas sectors.

I now run the risk of having to close my doors and retrench my staff.

At the end of the day it is the loyal and hard working companies and people that get affected, while the underworld and business-depriving thieves make millions and their lives go on.

When a company is liquidated a company like mine stands no chance of recouping that money and getting some of the pie due to be paid by the liquidators as we will only be in the category which is third in line.

Anton Ressel, an independent business consultant said:

Your chances of recouping any losses are sadly very slim, and in any case there will no doubt be months if not years of investigations and unravelling before any creditors do get paid out.

My only advice is to accept that this ship has sailed and look to the future.

The reality is that things like this do happen and while you are no  doubt brimming with rage at the injustice of it all, your business needs you to look forward now and not get distracted and derailed by what has happened already.

According to Ressel it is a dangerous strategy to procure only key accounts, he suggests that companies spread the risk.

[Source: Fin24]