administrators cash in at small business's expense

There are many aspects of the administration order on Leeds United football club that are worth scrutiny but here I want to concentrate on the exorbitant fees charged by the companies who handle these affairs.

In this case it is KPMG but they are not alone in taking huge sums from the assets of failing companies, reducing the chances of small creditors to get anything for the work they have done.

At Leeds United, creditors are being offered a penny in the pound for the money they are owed. So if they have provided a service worth £500, they will get a fiver. For many small businesses this could be disastrous.

But KPMG are already guaranteed £93,038 for the 340.5 hours work their staff put in the week between 4-11 May. That is an average hourly rate of £279.

I wonder how many of the small companies who will lose out by the slight of hand that will see Leeds United cast off their debts but continue to run as before with the same people in charge, can get anywhere near charging £279 an hour.

It seems it's more profitable to be a vulture picking on the bones of a carcass than someone who honestly tries to help the living animal.

Ah capitalism - you are such a wonderful system.

Saltaire Sam