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Smoothe gone into liquidation


STRAT
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Guys,

 

No panic we are securing new investment.

 

More info will be ready very soon.

And i will keep you posted.

 

Flavio

 

Production Director @ Smoothe

 

Yes good luck Flavio. Its not good to see anyone struggling. Quality work should be enough to keep a business in business, you'll be fine!

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...Smoothe confirmed they had gone into liquidation.

 

I'm in shock and disbelief about this. For what it's worth, I would cut costs to the core, lower the price-point, and go after the "low-lying fruit". We just can't continue to do business today like we did 2 years ago. Things have changed...

 

I hope Smoothe can survive this recession. It's too good of a brand and company to lose.

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Eddie's got a point, the large Viz companies are problably feeling the pinch alot harder than some of the smaller ones. Mainly because they traditionally attacted the high value work. Now that most of those projects are on hold or scraped all together so have those contracts.

 

Having said that it in turn will put the squeeze on the smaller guys if the larger ones are going after the lower budgeted jobs as well.

 

jhv

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This is the official statement from Smoothe:

 

Smoothe has had recent cash flow issues which have resulted in a restructuring of the company under the advice and guidance of David Rubin & Partners, Chartered Accountants and Insolvency Practitioners. A last minute drop-out in the proposed funding of this restructure necessitated the instigation of liquidation proceedings in respect of Smoothe Ltd. However, new funding has now been secured and the business will continue to trade, albeit under the new name of Smoothe International. Cash flow issues have been improved and the business has a healthy volume of current and confirmed work moving forwards.

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I trust the Architect's Journal which started this bad rumour will be printing the official statement in this weeks publication....!

 

They said that Smoothe had gone into liquidation which, according to their own statement, is true so no rumour starting there I think... I'm sure they are more than careful in checking the facts on these disclosures because, if unfounded, they could be very damaging.

 

Correct me if I'm wrong but its not just a name change, its a whole new limited company, presumably now free of the old companies cash flow or debt problems?

Edited by BillyElNino
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Correct me if I'm wrong but its not just a name change, its a whole new limited company, presumably now free of the old companies cash flow or debt problems.

 

That's how it appears. But, it can't be that simple or else anyone with cash flow problems would simply shut down and re-open with a slightly different name. In the US you just file Chapter 11 which would keep the creditors away until you can re-organize or liquidate. I guess these matters are handled differently in the UK. Anyway, if this is what it takes to stay in business I think it's fine.

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"Value" is what will keep you in business. Quality, price, speed, etc...

 

Cutting price is a slippery slope, of course. To stay in business these days, there's no way I could charge what I did two years ago. Fortunatly I had architecture to fall back on. Now I get a decent salary as a designer and I still get to take on sidework at my rate from two years ago. I just hate working two jobs now. It's not fun. Once the kids are out of daycare and that minivan is paid off I can enjoy my free time and give up rendering on the side for good, except for the choice projects from a few select clients.

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"Value" is what will keep you in business. Quality, price, speed, etc...

 

and connections especially in the Middle East.

 

I never lowered my price to anyone and got the job from that person who asked me to lower my price. Clients only ask you to lower the price if they want to use this as a weapon to negotiate with someone else. I once agreed to take on a rendering at $150 from Charles Roberts Studios which is a tenth of what I usually charge, because he said his Indian provider charges him $140, still I didn't get the job. So lowering the price will hurt a big company like Smoothe in two areas:

 

1- they will not be able to hire great talent because they won't have the money to pay them

2- they will loose respect form their past (and future) clients who paid dearly for world class rendeirngs and now they see the same quality at half the cost being given to others.

 

so any price lowering should be very careful, and I am, despite the news, very optimistic than in one to two years we should all be very busy, God willing. But every time I swear to not lower my pricing to accomodate a greedy client, I go back and screw myself and agree to their demands simply because I am too "nice". (actually I feel bitter about it, I need business skills)

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I once agreed to take on a rendering at $150 from Charles Roberts Studios which is a tenth of what I usually charge, because he said his Indian provider charges him $140

 

 

 

Wow...thats scary. If you had done the image for them at that rate you would have been ripped off by quite a margin. I know there work and have a good idea what they charge. Its a shame that a UK based company would do this though. It going to have a knock on effect - esp now.

 

Thank god i have other non Arch work to be getting on with.

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Thank god i have other non Arch work to be getting on with.

 

I second that, haven't had the opportunity to do an arch viz quote since.....err, trying to remember....August!

 

Times feel as bad as 1990 and that turned out really bad here in the UK.

 

Jim

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