Continuing to Work
If the practitioner considers that the business should continue to trade this is usually to explore the possibility of a going concern.
This provides 3 main benefits;
The business can be sold for more as a going concern than if the assets are auctioned off;
It allows a more orderly collection process of any book debts (customers that owe money to the business); and
The employees retain their jobs.
Whilst from an employee’s perspective the last of these benefits is usually most important, the fist two points could be important for the employees who have or will be made redundant.
It is important to bear in mind that the continuation of the business is partly to the benefit of the employees. Whilst sometimes the decisions made by the practitioner or staff responsible may be unpopular they are usually necessary for the overall good of the business (and therefore employees).
