The collapse of Wilko also shows why we need to reform insolvency laws

Submitted ⁨⁨1⁩ ⁨year⁩ ago⁩ by ⁨Syldon@feddit.uk⁩ to ⁨unitedkingdom@feddit.uk⁩

https://leftfootforward.org/2023/09/the-collapse-of-wilko-also-shows-why-we-need-to-reform-insolvency-laws/

The PPF is not meant to be a piggy bank for companies that are badly ran. Aside from the proposals in the article, the PPF should have legal powers to draw back some of that lost money from people who have profited from firms that have not protected pensions while knowing they were going into liquidation. This sort of egregious disregard for the well being of employees is why the PPF was introduced in the first place after the Maxwell scandals.

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JoBo@feddit.uk ⁨1⁩ ⁨year⁩ ago

Questions ought to be asked about Wilko directors paying £3m in dividends in the financial year to 31 January 2022 when Wilko made a pre-tax loss of £38.7m and was haemorrhaging cash as creditors were reluctant to grant credit. In the previous decade, around £77m in dividends was paid out. Directors extracted dividends and chose not to repair the pension scheme.

Company goes bust over half the amount they’ve siphoned out in dividends to idle shareholders over the last decade, with workers losing the pensions they’ve already fucking paid for.

How is this legal? Rhetorical question, I know how it is legal. And I know why we’re not rioting.

Where’s the fucking exit, please?

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