Liquidator reveals toll of delivering bad news of job cuts and closures

He’s an experienced Brisbane liquidator with more than 1000 cases to his name, but Morgan Lane has revealed what it’s like telling workers they no longer have a job.

Worrells Solvency and Forensic Accountants partner Morgan Lane. Picture: Mark Cranitch

AN EXPERIENCED Brisbane liquidator with more than 1000 cases to his name has revealed the tough toll of telling workers they no longer have a job.

When a financially troubled business is on its last legs many turn to insolvency specialist Morgan Lane for help.

Mr Lane has been a partner at Worrells Solvency and Forensic Accountants in Brisbane since 1996. He agrees it is unfortunate, but his business’s busiest time usually occurs when others are facing their toughest.

In his 30-year career, countless company directors have handed their embattled organisations to Mr Lane to revive.

“Regrettably, by the time they come to see us most hope is gone,” the liquidator said.

“You try to help them as much as you can.”

Each month about 15 cases cross his desk, with Mr Lane tasked with turning around a company’s finances or selling its available assets to pay creditors.

He said the toughest part was entering a room full of workers and delivering heartbreaking news.

“I’m the person that terminates staff and it’s not pleasant,” he said. “Every time to tell somebody they are without a job it is difficult. We’re often referred to as undertakers.”

Mr Lane said sometimes the news a company would close was followed with aggression, threats or tears.

“It’s not all numbers, it’s very personal,” he said.

Mr Lane started at the Queensland Corporate Affairs Commission, which later became the Australian Securities and Investment Commission, in 1990. He entered the financial world during a tough time for business, who were grappling with Paul Keating’s “recession we had to have”.

Mr Lane’s experience has revealed a common trend among businesses sliding down the slope to closure.

“Some will just put their heads in the sand and hope that things will go away,” he said. Mr Lane said it was vital business owners sought guidance quickly to avoid making matters worse.

“Listen to your accountants, look at their financial information and act on the advice,” he said. “Closing their business may be the better choice.

“If they keep going in a loss-making situation all they do is build up more debts and animosity.”

He said it was vital people researched what they were getting into before starting a business.

“Many directors I deal with haven’t drawn a wage from their business for many years,” he said.

“They have pride, they don’t want to be seen as being a failure and in many cases, even their partners or family don’t know what the real position is.”

He said companies facing an uncertain future should visit an insolvency specialist early.

“Those businesses that do come to us earlier and do listen to advice, give us a better chance to change or work out how it can be changed,” he said.