Paying the Ultimate Price For Skimming the Milk. Bankruptcy

Wednesday, December 24, 2008 2:26
Posted in category From the Factory Floor

In what is likely my last news related post this year, it is being reported by Bloomberg that Sanlu has Declared Bankrupt in China Court.

While some of the lawsuits are still in process (early ones were thrown out), it will be interesting to see what happens next.  Will lawyes set their sites on New Zealand courts and go for Fonterra directly?  Will there be a buyer of the assets, and rebirth of the dairy company formerly know to be safe?

Where this is a fitting end for Sanlu, and hopefully Fonterra’s executives as well, is that customers ultimately walked away and never returned to this firm.  Perhaps this will be the ultimate lesson for other firms to learn, and with any luck it will have a lasting impact on business practices.

Maybe I am being overly optimistic, but in a recent discussion with a Chinese media scholar acknowledged that since this scandal hit the press the juice has been turned up on firms.  That where firms could once count on an element of defense from media, that now the media was being given more power to investigate and report.

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2 Responses to “Paying the Ultimate Price For Skimming the Milk. Bankruptcy”

  1. Dan says:

    December 25th, 2008 at 7:56 am

    One does hope this will be a lesson, but I think it is going to take a helluva lot more than this….

  2. Chinamatt says:

    December 28th, 2008 at 5:52 am

    Karma really does exist…too bad it acted a bit too slow in this case.