It’s not only the big boys who can benefit from Insolvency and Restructuring advice
21 August 2018
In recent weeks and months it has been larger household names that have been in the news with their finances under the scrutiny of the news and media. Just a week ago Mike Ashley completed a deal to save many of the House of Fraser stores and to keep many workers in active employment. Carson McDowell was involved with some of the property aspects of this deal.
I recently wrote about the Force India Formula One team, which also found a buyer and continues to drive in the championships after a successful Administration.
Today’s news is that McErlains Bakery, a family business of 50 years, famous locally for their Genesis Crafty brand, but hardly a household name across the UK, has been saved out of Administration by a deal with Paul Allen, CEO of Tayto, salvaging numerous jobs. Thus a local business that we can all relate to seems to be in the process of successfully restructuring and hopefully will turn itself around unburdened from historic debt.
Within my own practice in recent weeks a CVA deal saved numerous jobs in a local smaller retailer. The retailer was hit with a significant six figure, back-dated rates bill due to an administrative error which, unfortunately for my client, was resolved against them. Although outside of this unexpected debt the business was perfectly healthy and profitable, my client could not meet the demand and faced Insolvency. The answer lay in proposing an arrangement to all of their creditors to compound their debts. With the assistance of a Licensed Insolvency Practitioner, we were able to illustrate to the satisfaction of all creditors that the dividend payable through the CVA was preferable to negligible return to creditors, were the company wound up insolvent.
Whilst this will not make the news, it does illustrate the options available when, for one reason or another, a good trading business is burdened by historic issues holding its progress and development back.
There is no one size fits all panacea in such situations but with the correct advice at an early stage insolvency can lead to a successful restructuring and business survival.
For further information Darren can be contacted at [email protected].