Struggling Business Owners Will Act Swiftly, If They Are Smart

In December, I warned that company insolvencies would soar over the next 12 months. Now, new research suggests that one million businesses are currently facing ‘financial distress’, with 850,000 UK firms currently suffering from decreased profits. Insolvency & Law provide services for companies in trouble, and businesses affected by companies in trouble i.e. creditors.

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Creditors Voluntary Liquidations Will Be Popular in 2011

Thousands of struggling company owners will voluntarily close their businesses this year, and most of those that do will use a Creditors Voluntary Liquidation (CVL) process. A CVL is perhaps more popular than a Compulsory Liquidation as it allows directors to put a company into liquidation with their shareholders’ approval and permission from creditors. If…

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Corporate Insolvency to Rise in 2011, Despite Xmas Boost

Research carried out by insolvency trade body R3 has found that nearly 50 per cent of UK businesses are currently experiencing falling profits. The new ‘Business Distress Index’ found that 750,000 businesses had seen a reduction in their sales volumes and 32 per cent had experienced a recent fall in market share. Last year, a…

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Suits You Administration is a Sign of Things to Come

British clothing retailer Suits You has collapsed into administration just eight months after entering a company voluntary arrangement (CVA), which aimed to save the Leeds-based business. Administrators Zolfo Cooper said they would wind down loss-making stores, but support the chain’s successful branches and sell as much of the business and assets as possible. The firm’s…

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A Winding UP Petition Doesn’t Have to Signal the End of Your Business

The vast majority of winding up petitions heard in British courts over the past 12 months were presented by HMRC and usually relate to VAT, PAYE arrears or failure of a Time to Pay arrangement. However, receiving a winding up petition from HMRC doesn’t necessarily signal the end of your business. Usually, petitions are preceded…

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Rise in businesses surviving the recession? Load of rubbish!

The British Government is perhaps one of the biggest costs to UK plc. During the 2007 bank bailout, Her Majesty’s Treasury turned the banks’ private debt into a public liability. Suddenly, billions of pounds went from private to public ownership as the banks’ debt was transferred into the Government’s account. The Treasury is owned by…

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