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Best corporate bankruptcies: Introduction
Who would think that I could write a blog about the best business failures? Corporate bankruptcy is normally associated with job loss, creditors and investors or shareholders losing out and liquidation.
This is true. But once in a while, corporate insolvency can also be used to end the life of a very financially sick corporation so that a new company can rise from the ashes and offer jobs to the affected employees of the bankrupt company. The story of the ServiCom bankruptcy is an example of the best possible outcome. Here is its story.
Best corporate bankruptcies: The ServiCom shutdown
On Thursday, December 6, 2018, the bankruptcy of the parent company of the ServiCom phone call center in Cape Breton closed it down without warning. It made 600+ Cape Bretoners immediately unemployed less than three weeks before Christmas.
Numerous people were out of a job after layoffs at the Sydney, N.S. telephone call centres over that weekend. The staff members at ServiCom expected to begin their week like they would any other Monday. On Saturday, the news broke that the company had suddenly laid off their staff members. Instead of working, they located themselves applying for unemployment and trying to find jobs.
“We were told to log off and then suddenly we don’t have a job” claimed one former employee. That Saturday, the telephone call centre notified the employees of the information that they no longer had work.
There was no notice for the layoff of this real number of employees. Accordingly, social agencies were incapable to set up conferences or job fairs to aid displaced staff members.
Best corporate bankruptcies: It was tough
Employees like Jamie Barbara were trying to stay positive in light of the problem. “Relieved, relieved now,” she said. “I can go on about my life and look for a job even harder than I was before”.
It was a tough several weeks for ServiCom employees. Many of the workers waited outside the Salvation Army to get a Christmas grocery order. Just before Christmas, that despair has transformed to delight. They obtained good news. Many people were thinking about bankruptcy.
Best corporate bankruptcies: A Christmas miracle
The workers were praying for a Christmas miracle and it arrived 13 days after ServiCom closed its doors.
An American business person, Anthony Marlowe, bought the assets of the bankrupt company for $1.5 million. The workers were thrilled that Mr. Marlowe was entering Sydney, N.S. and taking over. Mr. Marlowe started his career in outbound telemarketing as a call centre supervisor. Currently, he owns many call centre companies.
Todd Riley, the former manager of ServiCom in Sydney is now the Vice President of the new Sydney Call Centre. He claims they’ll be open for service and previous staff members are welcome. All of them will have their jobs back. There could be a couple of transfers from one program to another, however, everybody that was on the payroll will certainly be back.
Best business insolvencies: When jobs are saved
The telephone call centre now operates as the Sydney Call Centre and is owned by Mr. Marlowe’s company, MCI Canada. The excellent news is that he is seeking to expand the business.
Georgina Stuart is just one of many previous phone call center employees that were expecting to return to work in the New Year. “It’s just fantastic that we’ve got hope and work in the future, yes it absolutely does, so we’re looking forward to 2019.”.
There is now a feeling of relief. It was absolutely a roller coaster of feelings for the ServiCom employees. The Sydney Call Centre employees are thrilled to be back to continue their good work.
The building still had the ServiCom name on it when the employees returned. However, it absolutely is currently the Sydney Call Centre sustaining United States telecom AT&T as well as GM’s OnStar service, with much more business to hopefully come.
So, if anyone ever tells you that there is no such thing as best business insolvencies you can tell them this story.
Best business insolvencies: What about your company?
Does your company have excessive debt? Is the business viable but the corporate body is too sick to continue? Is your business in danger of shutting down? Will employees who have become like family be out of a job? Are the pain, stress, and anxiety currently adversely influencing your health and wellness?
If so, contact the Ira Smith Team today. We have years and generations of helping people and businesses seeking financial restructuring. As a licensed insolvency trustee, we are the only specialists certified and overseen by the Federal government to offer financial restructuring solutions.
We provide a free consultation to assist you to solve your problems. We know the discomfort financial obligations causes. The Ira Smith Team can end it as soon as possible from your life. This will permit you to start a fresh start, Starting Over Starting Now.
Call the Ira Smith Team today so that we can start helping you get back into a healthy and balanced, stress-free life.