Contracts had not been costed properly and the accounting system was non existent. The company was leaking money and when we scratched the surface it was clear that large debts had built up.
Case Study 2 – Builder
Builder
Location: Kent
Turnover: £1,200,000
Debts: Builders Merchants (Primarily)
The downturn in the housing market saw a major change in fortunes for this company. Contracts disappeared and existing projects were scaled back. Having taken on employees and bought additional equipment during the housing boom this left the business in an impossible situation.
It reached the point where staff could not be paid and redundancy payments were not available. With suppliers also threatening legal action there was no alternative but to liquidate the firm.
As the liquidator we ensured the process went smoothly and that the assets were sold for a reasonable price. We managed to pay off most of the debts and also helped the directors buy the company name. Within 6 months a smaller but more profitable ‘phoenix’ company was up and running.
Liquidation may not be as bad as you think and allowed the directors of this business to move on and plan for the future.
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If you are being threatened by creditors and have outstanding bills, you need to take immediate action. If the problem is not addressed quickly it may be too late to save your business and you could become personally liable for the debts. At The Insolvency Practice we can ensure you remain protected and show you the best way to clear your business debt.
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