Betterware Goes Into Administration
17th April 2018.
Another direct sales business has collapsed into administration, with the loss of more than 90 jobs and thousands of door-to-door selling roles.
The ‘retail apocalypse’ has claimed another victim. This time it’s the household seller, Betterware, which buckled under difficult trading conditions and cashflow problems. This is the latest in a long list of failed businesses, with Betterware’s demise following on from the recent collapse of Kleeneze, one of the oldest catalogue shopping companies. Traditional concepts have been repeatedly passed over for flashier and more enticing brands and online retailers. If businesses are to survive this apocalypse, change will have to occur.
This is not to say that retail is not still desired by the consumer, as people will always need to eat, decorate and indulge. However, there are simply more ways of obtaining them. Household items are now available online through eBay, Ikea or through delivery services offered by popular supermarkets such as Sainsbury’s. If high street retailers are to compete, and most importantly, survive, they must evolve past their traditional concepts and embrace new and exciting advancements. At the Credit Protection Association, our debt recovery services free up cash flow and allow our members to afford the newest technology and hire the most competent website designers, to ensure they match the competition and get profits rolling in.
Betterware traces its origins to 1928 when it was founded in east London as a door-to-door seller of brushes and polishes. The catalogue was launched in the 1970s and in 2015 the business was bought by JRJR, a Texas-based consumer sales group.
Along with the 94 staff at its Birmingham headquarters, the company relies on thousands of self-employed agents who distribute the catalogue around the country. Many of them have other forms of income to supplement their earnings.
Begbies Traynor, the company’s administrator, said that Betterware had ceased trading, with all staff made redundant. “Our aim was, of course, to find a purchaser for the business as a going concern in order to safeguard the jobs, but unfortunately this did not prove possible,” it said.
Betterware is just the latest in a long catalogue of company closures and failed businesses, where low demand has led to plummeting profits. The high street is a competitive environment, with many businesses desperate to impress consumers but lacking the turnover to achieve it. Business owners may be tempted to apply for bank loans or alternative finance, but in this shaky economic climate, it would be more beneficial to improve finances rather than do them more damage.
Here at the Credit Protection Association, we are both a debt recovery and credit management company. This means we chase late payers, recover old debt, as well as use our expertise to help our members’ credit scores. This raises their financial position, while the various credit checks on suppliers ensure they stay there.
So if you think your company is in trouble, don’t surrender to the administrators just yet.
Not only does our team free up cash flow and spring clean finances, we also have a special scheme using this little-used legislation that helps business owners realise a hidden source of cash and unlock hidden potential within their business.
Don’t let this ‘retail apocalypse’ take you too.
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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