[Anonymous]

Regular poster, but don’t want this post linked to my name.

Let’s say there was an organization in your town that closed down due to financial problems (probably filed bankruptcy). It was a large enough organization relative to your area that it had a major economic effect on the area – employees who were now unemployed drastically increased unemployment numbers in the area causing a lot of people to move out of the area to find work, subcontractors who didn’t get paid had difficulty paying their employees and some had to close their doors, etc. There were rumors flying around town about why it closed – General administrative mismanagement? Financial mismanagement? Economic downturn in the market segment? Of course the juicier rumors flew further, but no one really knew the full story, since the full story was buried in he-said she-saids and drawn-out bankruptcy court proceedings. General public opinion was mixed, but a lot of people (including prior employees) thought “they” (the leadership of the organization) had screwed up and were to blame for the downfall of the organization and all the effects it had on the community.

Now, let’s say I was the Controller of said organization for, oh, 3 years before it closed. If I came to you seeking a job with similar duties and responsibilities, would you consider me for it same as any other applicant, or would you be more likely to shuffle my resume to the “do not call” pile out of concern that my time at the organization contributed to its downfall?

TLDR: Does working in an accounting management role (ex: Controller) at a business that fails have a negative effect on future job prospects if the future employer knows about the prior employer’s failure (small town or large, well-known employer)? Would your view on this vary for a failed start-up vs. a business that had been established for awhile (say 100+ years)?

[Missy]

Depends on how much influence you had in the operations of a company. A typical controller provides the information that the decision makers use, if that's the case no I wouldn't consider the bankruptcy in a hiring decision especially if I wasn't hiring you to make those decisions for my company. However many controllers do make capital and staffing decisions, and if I was looking to hire someone who would truly be steering the business I have to admit I'd be leary. Plenty of execs of failed companies find great positions after the fact (the former CEO of radio shack comes to mind) but I'm sure the search was a bit more challenging than if they left a thriving business. Also remember it has a lot to do with who the other applicants are, if none or few have relevant experience you stand a better chance than if your competition has similar credentials with successful companies.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[fuzyfro89]

Being controller alone wouldn't put you in line for being blamed… again, depends on the circumstances (possibly just perception if the reality is not publicly known). Depending on what is known and what you are allowed to say, it may affect opinions.

(version 1-good product, bad management) “So our products were flying off the shelves but we made some bad plant expansion decisions and a few poor investment decisions and are now losing money because we couldn't get a project online.”
(version 2-bad product, good management) “I was hired as the company was doing poorly and needed to improve operational controls and reporting after some external auditor concerns were raised to the board. Since I joined, we did X, Y, and Z, and helped to alleviate those problems, but the sales just didn't improve enough to keep the business afloat.”

V2 makes you look like you went into a tough situation and just couldn't fix the business, whereas V1 makes it look like you (and/or senior management overall) was incompetent.

Personally, I think the business circumstances matter more than the longevity of the business. If your company prints and sells maps for rest stops, it could have probably done very well up until the early 2000s, when GPS systems came up into the market, and then come ~2010 and with everyone getting smartphones, the product could simply no longer be viable. Wouldn't matter how sexy the Annual Report looks or how wonderful the SOX framework was if the product simply isn't relevant. Of course, this is an extreme example, but gives you an idea of where it could be viewed that the company's product simply didn't keep up versus management doing a poor job.

[nyclife]

I agree with the others. If you're interviewing for a position and the competition is not up to par, then you should easily outshine them. The situation can be viewed as (1) Good horse, bad jockey or (2) Bad horse, good jockey. It's hard to know how someone will perceive the situation until you speak to them. Even then it might not be relevant because if they're interviewing you, then more than likely they are interested in your candidacy. The chips will fall wherever they will fall so focus on interviewing and closing the deal by emphasizing the skills you bring as an experienced controller. Suit up and look for your next horse.

[Anonymous]

Honestly I'd probably interview you out of pure nosiness just to inquire about your prior position :).
If your town is as small as ours that something of that size would have a substantial effect on the community, your reputation would proceed you. So, depending on what that image is, that may have a huge impact on interviews. I think you're going to be looking at a lot of subjective reasoning behind why they do or don't interview you given the situation. But in the end, business is business.. company's go bankrupt every day, and businesses know this, and as long as the company didn't go under due to those within it perpetuating fraud you should be fine.

[Gatorbates]

Exact thing happened to me. Outside of being unemployed for 7 months, no effect on my career. Just an explanation during interviews (I was Controller of the company as well).

Licensed Florida CPA:
B: 71, 73, 79
A: 83
R: 78 (expired), 77
F: 74, 74, 80

It's finally freaking over.

[Author]

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