This led to an interesting debate in the Worker Co-op Facebook Group on reasons for business failure and the possibility of employee buyouts as a means of rescue or succession. If this were done well it would be an opportunity.
However, in this or any other case, woe betide any co-op that uses the industrial and provident society structure and has solvency issues….. Are you sitting comfortably for details of the threat?
It is ten years since Gareth Thomas MP of the Co-operative Party succeeded in amending the Enterprise Act 2002 to insert section 255 which allows HM Treasury to apply the administration procedure for rescuing insolvent businesses to co-operatives and similar societies.
The society will either be wound up with the loss of jobs or put in the hands of a receiver who pursues bank’s interests.