GFC had debilitated the real income of the household and the unemployment rate has also increased, therefore there will be a significant decrease in household consumption. All these are related to the collapsed of Clive Peeters because in early 2008 Clive Peeters's debt level has increased significantly due to borrowing loan to expand their business activities. The increase in debt level is normal but GFC had weakened the consumer's sentiment. GFC has caused the debt becomes a burden to the company because the economy goes down the households will stop buying luxury items such as plasma television and etc. In this case, the company will not able to generate more sales to pay off its own debt. Based on the 2009 annual report, even though the company managed to recover 16 million dollars from the fraud but the company sales still