Can a 220k pound embezzlement cause a 5M per year turnover company to go under?

Question

Given that the fraud was committed over a 2 to 3 year period?

I don't have the smarts to work this one out exactly, but my instinct says - no.

Basically, the company who makes the new computer I have purchased - has gone under, I want to return it for repairs, and I obviously cannot, and I did not pay with a credit card, so I'm stuffed.

Here is a link: http://www.bit-tech.net/news/2008/05/09/former-rock-employee-stole-220-000-of-stock/1

So what do you think?

Thanks in advance for your opinion.

Answer 1

It sure can.  The 220k embezzlement was taken out of their profits, and turnover is the amount of sales, not profits.  

If the 5M company was only making 5% in profit, that's 250K.  Essentially all of that company's profit could've been wiped out, and in this economic climate, with rising costs, it's entirely possible.

Answer 2

Who did the embezzling? If it was a senior officer/director not good. Has he resigned? If you have one problem there will probably be lots more. Anymore skeletons in the cupboard? Is it quoted? Is it profitable? (silly question)

Oh, I see; he was head of Sales! They lost their credit facilities because of it, and also they say it was not totally his fault, so probably other things (fiddles) going on.

Rock laptops??? Who??

As you probably know they are in Administration. If you bought by credit card you should try getting your money back through them. It would seem you won't get repairs or servicing on year old machine, but the extended warranty may be covered by an Insurance policy. If it is a good laptop then just get it repaired (cheaply) elsewhere.