How can a business protect itself from insolvency? Poppleton and Appleby partner, Stephen Wainwright discusses in his latest blog.
A major reorganisation and enhancement of UK Insolvency legislation was already being considered long before Coronavirus became a familiar term and the consultation process around the shape of new legislation has in fact been launched only recently within the Insolvency, Turnaround and Financing business community. However, as a responsive need at the outset of Lockdown in the UK, the Government announced some surprising temporary measures that were all intended to minimise the commercial impact of the lockdown and support businesses that might otherwise feel compelled to shut up shop permanently when faced with the challenges it presents. The measures were [...]
There are a number of warning signs that a company is in financial distress and action is required. Insolvency isn’t always avoidable but the chances of doing so are always improved if action is taken early and rapidly to give the company the greatest opportunity of trading its way out of difficulty. The warning signs can be singular but usually accumulate in a financially poisonous cocktail and it is important that directors and company accountants are prepared to recognise them. Creditor Action Many companies and businesses occasionally miss payments; however, if this begins to occur frequently, it suggests that a [...]
If your employer is insolvent and enters Liquidation, Administration or a Company Voluntary Arrangement (CVA), it will probably have an impact on your employment status. Your first concerns are likely to be around whether you still have a job, whether you will still be paid and how to make sure your rights are protected. The first thing to have in mind is that all employees have special rights. If your employer is unable to pay you because they have become insolvent, then you are entitled to make a claim on the National Insurance Fund (NIF) - a process administered by [...]
Small businesses are the backbone of our economy and in the last 5 years, the amount owed to smaller businesses in late payment has more than halved but we want to see payment practices improve even further. Research carried out by R3 earlier this year found that late payment of invoices was the most common sign of business distress among companies in the North East, North West, Yorkshire and Humberside, with more than a quarter (27%) of them saying they were owed payment on invoices that were 30 days past their due date. A 2016 R3 survey of the insolvency [...]
Directors are prohibited from utilising the same or similar business name for five years following a liquidation, subject to certain exceptions which can be found in insolvency legislation.
A company is generally considered insolvent when it can't pay its bills as and when they fall due or if its liabilities are greater than the value of all its assets. Legally, the directors of a company are required to act in the best interests of its creditors.
Everyone recognises that these are difficult and challenging times for the retail market, but please understand that by communicating with suppliers and indeed customers and having regular meetings with them, means that difficult situations can, but not always, be averted.
After almost 40 years of helping individuals to resolve daily problems arising in their business and personal lives I never tire of meeting people. I get excited at the prospect of hearing the story of their journey and the interaction of their personal and business lives.
Marks and Spencer plan to close 100 stores in the next four years, as a continuation of a revamp of the once iconic High Street staple that has already seen 21 stores close since 2016.