And so it begins.

The news that BGH has gone into administration is a sad and worrying blow for anyone connected to the company - both customers and employees - and is a shot across the bows of many companies in a similar position across the industry.

Bill Gleave's candid explanation of what went wrong is also a lesson in why diversification is the key to longevity in a downturn. Particularly when you're operating in the high volume, low margin, cash flow reliant end of the business.

Gleave bought the company out of administration in 2005, a situation caused by it's biggest customer, B&Q, pulling its contract. It's ironic then that B&Q's parent company Kingfisher has done the double by announcing the closure of BGH's current biggest customer Trade Depot.

Gleave tried to spread the company's interests into retail, house builders and social housing contracts, but as those sectors crumbled when the economic earthquake hit he was always on the back foot and never really recovered despite reinvestment and restructure.

It's a real shame and the repercussions will be felt for sometime to come - not least with those with incomplete orders now floating around the offices of Pricewaterhousecoopers.

I fear though that this is not the last major company to fall under the weight of the severe market, so lets take the away the lessons we can. Spread your interests, don't rely on one customer, and go for higher value, low volume markets - you never know, it might see you through.

What do you think? Have you been affected by the BGH collapse? Email us.