More companies to close

More companies could be heading for the corporate graveyard during the second half of the year as lack of cheap working capital, high labour costs and stiff competition from imports continue to choke industry and commerce.

Business also has to contend with using antiquated equipment, high licence fees and utility bills that are making the revival of local industries impossible in the short-term.

And as more companies head for collapse, there is one group of individuals who are, however, rubbing their hands in glee: Liquidators and judicial managers. Like undertakers, they thrive on the collapse of companies, and with the turbulence in industry and commerce, they are at the beck and call of those who find the going tough.

Judicial managers and liquidators, who take over management of firms under liquidation, charge either a percentage of the portfolio or asset value of the company, which is negotiated up to about 5,5 percent.