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MONDAY, FEBRUARY 8, 2021
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KFC’s 35 lay-offs Accountants brace for reveal economic surge in insolvencies ‘chains’ breaking By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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AHAMIAN accountants are bracing for “an uptick” in corporate insolvency work during the 2021 second half with companies already moving to restructure as hopes for a quick economic rebound fade. Ed Rahming, the Intelisys (Bahamas) founder and managing director, and Philip Galanis, the HLB Galanis managing partner, both told Tribune Business they were anticipating an increase in restructuring, receivership and liquidation-type jobs as growing numbers of businesses find themselves unable to cope with the financial devastation inflicted by the COVID-19 pandemic. “I do anticipate that. I’ve seen some of that already, and will likely see more of it,” Mr Galanis said of such work. “I think initially there will be an attempt
• Predict increase in 2021 second half • Firms moving on internal restructures • First eye staff and investment cutbacks
ED RAHMING
PHILIP GALANTIS
to restructure. Companies have already approached us about how to restructure before receivers are appointed by banks and other lenders. “I think many companies, because they see the hand writing on the wall, have voluntarily retained persons to help them restructure their business, both organisationally and financially. We are seeing an increase in both areas.”
Many Bahamian businesses are fighting for their very survival, given that the tourism recovery and wider economic rebound remain some months away at the very least. Mr Galanis suggested that their efforts, together with creditor forbearance, will likely delay any surge in liquidation and receivership work for the accounting profession until the latter months of 2021. “We won’t see an uptick
Property tax complaints system branded ‘flawed’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A LEADING real realtor has branded the real property tax appeals system as “flawed” because complainants first have to pay the sum they are disputing for the process to launch. David Morley, Morley Realty’s principal, told Tribune Business his concerns with the existing set-up were “two-fold” because homeowners could end up paying an “exorbitant” tax bill for several years while the challenge to the Department of Inland Revenue’s (DIR) valuation
DAVID MORLEY of their property awaited resolution. And, instead of repaying the sum in dispute should the ruling go against it, he said the government merely gives successful claimants a credit towards future real
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‘Don’t talk, act’ call on marijuana pledge By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE former Democratic National Alliance (DNA) leader is urging the government to “not just talk but act” on its proposed medical marijuana legislation, adding: “It’s better late than never.” Branville McCartney, who campaigned on legalising a medical marijuana and industrial hemp industry when he led the party into the 2017 general election, told Tribune
BRANVILLE MCCARTNEY Business that what the government is now pledging to do “should have been done years ago”. Recalling how the nowgovernment and current
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in liquidations and receiverships immediately; it’s likely in the 2021 second half,” he told this newspaper. “Hopefully people will try as best they can, and financial institutions and creditors will help companies be nursed back to good health in the first half. “But if we don’t see an improvement in the economy, companies will probably look to receiverships and liquidations in the second half of the year. I think a lot of that is also going to coincide with the ability to access COVID-19 vaccines. “I’d prefer to work with companies that are operating as a going concern rather than in receivership and liquidation, and where they see an opportunity to be nursed back to good
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE hotel union’s president says KFC’s decision to lay-off 35 workers exposes how “the chains” that bind the Bahamian economy together have either been weakened or broken by COVID-19. Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) chief, told Tribune Business the fast food franchise’s action highlighted just how dependent many industries are on the tourism industry and the subsequent effects of the fall-out from that sector’s tepid re-opening. All 35 workers impacted are BHCAWU members, and Mr Woods said he understood those affected have been sent home on temporary furlough for 12 weeks. Once that period expires, KFC and its owner will reassess and determine whether to move to full severance payouts and permanent terminations.
DARRIN WOODS Restaurants Bahamas, the Bahamian Kentucky Fried Chicken (KFC) franchise’s owner/operator, in a statement on Friday blamed a combination of “the unprecedented economic slowdown” caused by COVID-19 and the government’s 10pm nightly curfew for the move to cut its more than 360-strong workforce by almost ten percent. The franchise had typically operated until midnight pre-COVID, but the curfew has effectively cost it some 21 operating hours per week to reduce both revenues and staff working hours. Restrictions
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