On Friday 31 August the citizens of Port Elizabeth were treated with a banner headline by a local newspaper reading; “Radisson in the red – Shock as Port Elizabeth’s premier five-star beachfront hotel is placed under liquidation”
The opening paragraph of the front page story read; “In a shock move, Nelson Mandela Bay’s premier five-star hotel, Radisson Blu in Summerstrand, has been placed under liquidation. three years after the glitzy launch, Radisson has accrued ‘substantial debt’, according to people linked with the company, which has led to the liquidation order.”
Before we break this down a quick pop quiz – So Which Headline Sells the Most Newspapers?
- Radisson in the Red
- Radisson Landlord in the Red
Let us put the reporter, his sub editor, acting editor and the world properly in the picture with regards to this liquidation order.
The situation is as follows:
- A business (Radisson Blu) leases premises from a landlord (Auspex), the landlord fails to pay for his building and his creditors (IDC and ABSA) call for the liquidation of Auspex.
- Let’s say that Avusa rents premises from Ken Denton. Suppose that Ken Denton, as the landlord, has a liquidation order brought against him by the Eastern Cape Provincial Heritage Resources Authority who wish to attach the building that Avusa is in. Does that mean that Avusa is now under liquidation? No. Is is ethical to then report that Avusa is under threat of liquidation? No.
Did I get it right? (You have my number, Heather)