There have been so many companies that have gone out of business this year and many have been small whereas many of them have been huge?

Woolworths PLC

Well as a former member of the group I must say that I know exactly why the company closed and part of it was indeed down to the poor fixed asset accounting that the company had been doing. Woolworths were a gigantic company and the reason they failed is because there were idiots running it. The directors actuall knew the company was in serious trouble and they just didnt seem to try and do anything about it at all. vThis obviously failed and I must say a lot of this was to do with the thick headed directors not being able to manage their assets.

XL

Although a lot of this was actually down to the rising fuel prices and the recession part of this was that XL just had too many planes for the amount of people flying with them. Planes of course were the primary asset of the company therefore they were not managing their assets in the correct way. Another reason why XL failed as a business is because a lot of the people travelling with them had thought twice about taking a holiday because of the recession.

MFI

This again can be blamed on many different things. One of the major reasons is because they didn’t really put enough time into caring for their customers. The big problem is that most of the things that the company said were included in the offer werent at all and this was a big problem. The thing is MFI were way too up themselves to realise that IKEA as a real compeitior which is why they failed as a company.

So the advice here? Get some asset tracking in there and make sure your inventory management software is perfect!